Recently, I received the 2016 annual report for OUE Hospitality Trust. As I am invested in OUE Hospitality Trust, below are points I felt are important for me to take note of.
- Net Asset Value (NAV) per stapled security has declined over the years. The Net Asset Value (NAV) per stapled security for FY2014, FY2015 and FY2016 are $0.90, $0.90 and $0.77 respectively.
- OUE Hospitality Trust has no debt due until July 2018.
- In 2017, higher traffic through Changi Airport could potentially benefit Singapore’s hospitality sector.
- Distribution yield has declined over the years. The distribution yield for FY2014, FY2015 and FY2016 are 7.45%, 8.51%, 6.98% respectively.
- The board of directors consists of men with politician experiences. Mr Lee Yi Shyan, Deputy Chairman was previously a member of the Cabinet of the Singapore government from 2006 to 2015. Mr Chong Kee Hiong, Chief Executive Officer was an elected member of parliament for Bishan-Toa Payoh GRC. Mr Ong Kian Min, Independent Director was an elected member of parliament in Singapore from 1997 to 2011. I consider the management as a strong team with rich experiences.
- The two top tenants in FY2016 by rental income are OUE Limited and OUE Airport Hotel Pte Ltd who contributed 59% and 15% respectively. This shows that OUE Hospitality Trust has strong sponsor support.
- The directors held more units of OUE H-BT from the beginning of the year to the end of the year (No change in holds as of 21 January 2017).
|Name||Holdings at beginning of year/date of appointment||Holdings at end of the year|
|Chong Kee Hiong||1,008,333||1,341,082|
|Liu Chee Ming||400,000||532,000|
|Lee Yi Shyan||8,000||10,700|