OUE Commercial REIT in Cao Cao chained ships
On 24 August 2022, Singapore announced further relaxation of COVID-19 measures. Effective 29 August 2022, non-fully vaccinated travellers will be allowed to enter Singapore without applying for approval. In addition, wearing of mask is optional except on public transport and in healthcare facilities. These relaxations should further expedite the recovery of the travel-related sector, thereby benefitting S-REITs like OUE Commercial REIT.
Despite the positive developments, it is not going to be smooth sailing for OUE Commercial REIT as the operating environment has turned significantly dark. Obviously, the market is still reeling from the fallout arising from Russia invasion of Ukraine. Supply chain has been disrupted and inflation rates rocketed in many countries. Against this backdrop, US Federal Reserves has raised interest rates four times, bringing federal fund rate to between 2.25% and 2.5%.
A member of SG Wealth Builder has requested for a stock analysis of OUE Commercial REIT and sought my opinion on the management team’s competency. Year-to-date, the unit price has tanked by about 14.8% (at the point of writing). In terms of unit price performances, OUE Commercial REIT is easily one of the worst among the commercial S-REITs. What could be the factor for the bearish form?Read more