---
title: "Buy Rating Backed by Occupancy Recovery, Stronger Cash Flows, and Undervalued Yield Opportunity"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/276074592.md"
description: "DBS analyst Derek Tan has maintained a Buy rating on OXMU stock, citing improving occupancy rates expected to reach 90% by FY25/1QFY26 and a boosted payout ratio to 65%. He anticipates a 20% increase in NPI, bringing earnings closer to pre-pandemic levels. With units trading at 0.4x P/B and a forward yield of 6.6–8.0%, Tan's DCF-based target price is USD 0.33. Phillip Securities also supports a Buy rating with a $0.32 target."
datetime: "2026-02-16T17:25:17.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/276074592.md)
  - [en](https://longbridge.com/en/news/276074592.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/276074592.md)
---

# Buy Rating Backed by Occupancy Recovery, Stronger Cash Flows, and Undervalued Yield Opportunity

DBS analyst Derek Tan has maintained their bullish stance on OXMU stock, giving a Buy rating today.

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Derek Tan has given his Buy rating due to a combination of factors tied to improving operations and income visibility. He expects occupancy to rise toward about 90% by FY25/1QFY26, supported by longer leases that extend WALE to 4.7 years, which should boost NPI by roughly 20% and bring earnings close to pre-pandemic levels.

He also highlights management’s decision to lift the payout ratio to 65%, signalling confidence in cash flow recovery, and notes that potential U.S. rate cuts could further lower funding costs and support distributions. With the units trading at roughly 0.4x P/B and offering an attractive forward yield above about 6.6–8.0%, Tan sees significant value, underpinning his DCF-based target price of USD 0.33 and Buy recommendation.

In another report released today, Phillip Securities also maintained a Buy rating on the stock with a $0.32 price target.

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- [OXMU.SG](https://longbridge.com/en/quote/OXMU.SG.md)

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