OUE Real Estate Investment Trust (SGX:TS0U) ROC % : 3.86% (As of Dec. 2024)

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What is OUE Real Estate Investment Trust ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. OUE Real Estate Investment Trust's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 3.86%.

As of today (2025-03-25), OUE Real Estate Investment Trust's WACC % is 7.45%. OUE Real Estate Investment Trust's ROC % is 4.58% (calculated using TTM income statement data). OUE Real Estate Investment Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.

OUE Real Estate Investment Trust ROC % Historical Data

The historical data trend for OUE Real Estate Investment Trust's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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OUE Real Estate Investment Trust ROC % Chart

OUE Real Estate Investment Trust Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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2.95

2.28

2.77

3.47

4.65

OUE Real Estate Investment Trust Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial															2.99	3.07	3.78	3.16	3.86

OUE Real Estate Investment Trust ROC % Calculation

OUE Real Estate Investment Trust's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	216.98 * ( 1 - -25.29% )	/	( (6033.275	+	5668.153)	/ 2 )
=	271.854242	/	5850.714
=	4.65 %

where

	Invested Capital		(A: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	6068.711	-	62.39	-	( 54.225	-	max(0, 106.591	-	79.637	+	54.225	))
=	6033.275

	Invested Capital		(A: Dec. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	5939.901	-	111.64	-	( 361.67	-	max(0, 227.176	-	387.284	+	361.67	))
=	5668.153

OUE Real Estate Investment Trust's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	216.764 * ( 1 - -4.87% )	/	( (6103.107	+	5668.153)	/ 2 )
=	227.3204068	/	5885.63
=	3.86 %

where

	Invested Capital		(Q: Jun. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	6073.412	-	101.258	-	( 58.609	-	max(0, 214.824	-	83.871	+	58.609	))
=	6103.107

	Invested Capital		(Q: Dec. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	5939.901	-	111.64	-	( 361.67	-	max(0, 227.176	-	387.284	+	361.67	))
=	5668.153

Note: The Operating Income data used here is two times the semi-annual (Dec. 2024) data.

OUE Real Estate Investment Trust (SGX:TS0U) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, OUE Real Estate Investment Trust's WACC % is 7.45%. OUE Real Estate Investment Trust's ROC % is 4.58% (calculated using TTM income statement data). OUE Real Estate Investment Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

OUE Real Estate Investment Trust ROC % Related Terms

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OUE Real Estate Investment Trust Business Description

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Address

333 Orchard Road, No. 33-01, Singapore, SGP, 238867

Website

https://www.ouect.com

OUE Real Estate Investment Trust is a real estate investment trust. Its principal investment strategy is to invest in income-producing real estate used primarily for commercial purposes in financial and business hubs in key gateway cities. The company's portfolio comprises of two hotels which are Hilton Singapore Orchard and Crowne Plaza Changi Airport. Complementing Hilton Singapore Orchard is Mandarin Gallery, a choice location for international brands in the heart of Orchard Road. Meanwhile, OUE REIT's office assets which are OUE Bayfront, One Raffles Place and OUE Downtown Office, are situated within the Central Business District .The objective of the trust is to deliver stable distributions and provide sustainable long-term growth in returns to its holders.

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