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UI Bousted Reit - UIBU
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chengwh1
Elite |
27-May-2026 16:13
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We need to see analyst' s opinions after the co-investment ann' t of the Seletar aerospace facility, and how the 2 co-investment initiatives will affect each other,.......... To Alignment : this BTS project is scheduled to be completed by 2QFY27, hence, in a year from now. Upon TOP then, tenant shld start to move-on, and rental collection shld start,... which is possibly in 14 mths from now, not in 3 years' time. There was mention that there is a built-in rental escalation of 2%,... and we are assuming it' s 2% PER ANNUM, which may not be the case. Could be 2% after 5 years,... since it' s such a long tenancy agreement here. The loan drawdown could start later because internal funds could be used first to pay the contractor, and the interest cost would probably be around the current interest rate, not 3.5%. |
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tangsookiam1947
Master |
27-May-2026 15:32
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UOBKH' s Koh maintains ' buy' call and $1.16 target price on UI Boustead REIT following Japan logistics project UOB Kay Hian analyst Jonathan Koh maintained a &ldquo buy&rdquo call and $1.16 target price on UI Boustead REIT after the REIT announced its first co-development project in Japan. The REIT is taking a 24.26% stake in UIB Konan Phase 3, a logistics development in Shiga Prefecture, Japan, with a total effective investment of about S$20.8 million and initial capital commitment of S$7.3 million. The project involves two modern logistics facilities next to the REIT&rsquo s existing Konan Phase 2 asset, allowing operational synergies and stronger clustering benefits. The location is strategically positioned between Osaka and Nagoya, where logistics demand remains strong and vacancy rates are low. UOBKH views the project positively because the REIT is entering at the development stage, allowing it to capture development margins. The estimated yield on cost is about 4.8%, which is higher than the REIT&rsquo s existing Japan portfolio yield of around 3.6%. In simple terms, this is somewhat like buying land and building the warehouse early rather than purchasing a completed asset at a more expensive valuation later. The investment is relatively small for now, increasing portfolio assets under management by only around 1.1%, while aggregate leverage is expected to rise modestly to 38.6% upon completion in FY2027. Importantly, the REIT also has the option to acquire the remaining 75.74% stake later at a 4% yield, giving it flexibility to scale exposure if the project performs well. Koh also highlighted that the project already has encouraging tenant interest, with potential pre-commitments of about 70%. Occupancy at Konan Phase 2 has already improved to 81%, with management targeting 90% by June. Despite the Japan expansion, Singapore remains the REIT&rsquo s core market at about 70% of portfolio AUM. The analyst also pointed to future growth opportunities including Singapore built-to-suit developments and AEIs such as converting AUMOVIO Building Phase 3 into a multi-tenanted property. At the time of the report, the REIT was trading at 83.5 cents, below its IPO price of 88 cents, while UOBKH estimated FY2027 DPU yield at an attractive 8.1%. |
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Joelton
Supreme |
27-May-2026 13:48
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Lai of DBS maintains ' buy' and $1.05 target price on UI Boustead REIT following $104 mil aerospace park development From the perspective of Lai, this transaction strengthens UIB REIT' s portfolio resilience and income visibility, with portfolio WALE expected to improve from 5.8 years to 6.4 years, while Singapore exposure rises to 72% of assets under management. Furthermore, the structure of this deal is such that the REIT, which was listed only in March, can choose to fully own this asset over time, thereby providing an additional medium-term acquisition pipeline, says Lai. " Strategically, the acquisition deepens UIB REIT&rsquo s exposure towards specialised aerospace and high-spec industrial assets with higher barriers to entry, while showcasing the sponsor&rsquo s ability to originate proprietary development opportunities," says Lai. Post transaction, UIB REIT' s aggregate gearing is expected to rise to 39.7% post-transaction, still deemed by the analyst as " manageable" . DPU accretion, meanwhile, is estimated at 2.5%-2.9%, assuming a debt funded strategy. " We view the transaction positively as it demonstrates UIB REIT' s continued ability to originate proprietary build-to-suit opportunities alongside supportive sponsors, allowing the REIT to capture positive spreads from development of around 8.6% vs 7.4% portfolio yield for Singapore - securing long-term income streams," says Lai. |
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luckyguy3
Master |
26-May-2026 20:27
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This reit beginning to sound like ESR Reit...
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luckyguy3
Master |
26-May-2026 20:26
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No good la, ESR Reit last time used to have many " deals" while Sabana Reit quite low profile not much deals. More deals do not necessary means will be good.. The management can either focus more on " deals/acquisitions" or focus more on operation efficiency to increase the DPU. I got this feeling UIB Reit going to end up like ESR Reit, active in deals but neglect DPU..
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Alignment
Elite |
26-May-2026 20:05
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I have modelled this investment based on the disclosed information and making the following assumptions: 1) entire debt cost drawn from day 1 so paying full interest cost from day 1, 2) equity drawn down a third on day 1 and remainder on straight line basis over two years, 3) no rental income till year 3 after which increase by 2% each year (approx. inflation step up), 4) interest cost of 3.5% (versus current UIB debt cost of 2.4%) 5) no residual value beyond 2050 end of land tenure. Based on the above (which is a worse case than my expected base case outturn), I make the equity IRR to be 16% and a total 4.4x return. So a very attractive investment, even if rent only received from 3rd year onwards. I invite anyone who wants to do their own calculations to confirm the above. |
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chengwh1
Elite |
26-May-2026 18:17
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One thing that this REIT has is that it is never lacking in analyst coverage. You can see everywhere there is write-up on this REIT. UOBKH even wrote abt this REIT when its price was at 78c a week or two ago,... and then another write-up yesterday when the price touched 80.5c. Yeah,... we have to always be careful of the opinions expressed in the articles,... this is where our judgements come in. | ||||
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coco66
Member |
26-May-2026 12:36
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boustead reit itself will not receive any rental income for 2 years. cost to be funded progressively over this so called " development" period of 2 years. So ya. 2 years is a long time for a reit to go either direction. too many people didn' t know this. Surprise.
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JurongW
Elite |
25-May-2026 23:45
Yells: "Earnings give weight, Chart give wings" |
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tangsookiam1947
Master |
25-May-2026 21:57
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there will be many many more of such deals to come... just watch and see... UIB reits is likely to recover to more than $1 later on... dydd.
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Alignment
Elite |
25-May-2026 20:52
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This new deal is clearly attractive especially considering looking like they are using asset level finance. 8.6% yield on cost, but two thirds of that cost is debt funded so the yield on equity is massive. The gearing is high, but supported by a 22.5 year tenant lease. Wow. Hopefully Macquaire can pull a few more rabbits like this out of their hat and this will be flying. |
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chengwh1
Elite |
25-May-2026 14:29
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Tq bro,... where does it say that the tenant will only start leasing (and paying rental) in 2+ yrs from now ? Many things can happen in that timeframe. The mkt too is not comfortable with this REIT, judging by the share price movement since IPO,....
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coco66
Member |
25-May-2026 13:58
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The tenant will only start lease in 2+ year from now dont feel comfortable holding thi reit, have sold half this morning at 0.8
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Joelton
Supreme |
23-May-2026 13:48
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UI Boustead Reit, Boustead unit to co-invest in S$104 million Seletar aerospace facility
The real estate investment trust may fully purchase the asset after it gets a temporary occupation permit
[SINGAPORE] UI Boustead Real Estate Investment Trust : UIBU +0.65% (Reit) and Boustead Singapore : F9D +1.68% are co-investing in the development of a build-to-suit aerospace facility in Seletar Aerospace Park, in a project valued at about S$104 million.
The manager of the Singapore-listed Reit announced in a filing on Friday (May 22) that the facility will be fully leased to &ldquo a leading global aerospace corporation&rdquo for about 22.5 years, with built-in rental escalations.
UI Boustead Reit holds a 51 per cent interest in the development. A subsidiary of Boustead Singapore holds the remaining 49 per cent, which the Reit will have the option of purchasing after the project obtains its temporary occupation permit.
The facility will be located in Seletar Aerospace Park on a site of 322,800 square feet (sq ft) its projected gross floor area is about 252,100 sq ft. The land lease from JTC Corporation will run until 2050.
Including fees and related expenses, UI Boustead Reit&rsquo s effective investment value in the project is estimated at S$53.9 million the required capital commitment is about S$17.9 million.
As the project&rsquo s costs will be funded progressively over the development period, the manager said that it would finance the project with internal funds, existing debt facilities or both.
Funding through external borrowings would raise the Reit&rsquo s aggregate leverage from 37.9 to 39.7 per cent when the development is completed, on a pro forma basis, the manager said.
UI Boustead Reit&rsquo s 51 per cent interest in the development translates to 2.8 per cent of its deposited property.
The manager said that the project has an estimated yield on cost of 8.6 per cent, above the projected 2027 net property income yield of 7.4 per cent for the Reit&rsquo s Singapore portfolio.
Tan Shu Lin, CEO of the Reit&rsquo s manager, noted that this marks UI Boustead Reit&rsquo s second co-investment since its listing on the Singapore Exchange in March.
&ldquo This underscores UI Boustead Reit&rsquo s uniquely differentiated growth strategy of undertaking co-investment opportunities in partnership with our sponsor, enabling the Reit to invest at the development stage, which enhances value accretion on a risk-mitigated basis for unitholders,&rdquo she said.
Boustead Projects will take on the engineering, procurement and construction management contract for the facility.
In a separate filing, Boustead Singapore said that the co-investment brings the total value of new contracts secured by the group since the start of FY2027 to about S$461 million.
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JurongW
Elite |
23-May-2026 00:19
Yells: "Earnings give weight, Chart give wings" |
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UI BOUSTEAD REIT ANNOUNCES BUILD-TO-SUIT DEVELOPMENT IN SINGAPORE FOR A LEADING GLOBAL AEROSPACE CORPORATION https://links.sgx.com/1.0.0/corporate-announcements/T6E5S61K0OFPGOO9/890026_UI-Boustead-REIT-Announces-Build-to-Suit-Development-for-Leading-Global-Aerospace-Corporation_MR.pdf |
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JurongW
Elite |
22-May-2026 22:56
Yells: "Earnings give weight, Chart give wings" |
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JurongW
Elite |
22-May-2026 22:38
Yells: "Earnings give weight, Chart give wings" |
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DBS target price : $1.05 https://api2.sgx.com/sites/default/files/2026-05/UIBREIT_Initiation_21may2026.pdf |
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coco66
Member |
20-May-2026 10:14
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Nope, and they are not maintaining it at 100%. That' s just poor financing. And my point remains: I' m not comfortable with yield calculated based on a 100% payout ratio. |
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Alignment
Elite |
20-May-2026 09:52
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What do you mean? SGX listed REITs normally payout 100% unless they are saving for something. Even then they have to pay a minimum of 90% in order to keep the tax free treatment. Paying less than 90% would mean they are in significant financial distress. | ||||
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coco66
Member |
19-May-2026 16:25
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100% payout ratio the first year? doesn' t make me feel comfortable. prime reit did that too 0.7 range here we come. |
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