OUE REIT 'BBB-' Affirmed On Enhanced Portfolio Strength; Outlook Stable

#ICYMI#

We are pleased to share that S&P Global Ratings has affirmed OUE REIT’s ‘BBB-‘ long-term issuer credit rating with a stable outlook, as well as the senior unsecured notes the REIT guarantees, following the REIT’s proposed acquisition of an additional 50.0% interest in 180 George Street, Sydney.

This affirmation underscores the rating agency’s confidence in our enhanced portfolio strength and disciplined balance sheet management.

Aligned with our Phase 3 Value Creation strategy, S&P recognises that the transaction enhances our portfolio strength:

🔸OUE REIT’s proposed majority stake in Sydney's 180 George Street will bolster its portfolio quality and geographical diversification, and support earnings from 2027. The asset’s earnings to be at least as resilient as those of the REIT's other assets, characterised by 100% committed occupancy and a 4.8-year WALE underpinned by high-credit multinational tenants.

🔸The consequent spike in leverage is expected to be temporary. The management is committed to bringing leverage down in line with historical levels via asset divestment. The potential divestment of One Raffles Place is the most likely way to bring down leverage.

🔸Stable rating outlook reflects our view that OUEREIT's divestment plans could help it reduce leverage over the next six months.

🔗To learn more, please download the research report: https://lnkd.in/gNXbnaHT

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