Company Coverage
UI Boustead REIT (UIBREIT SP) : On Track To Meet Forecast; Expect Higher Reversions In 2HFY27
BUY (Maintained)
Current price:
Target price:
Upside:
S$0.835
S$1.16
38.9%
Analyst
Highlights
Management is confident of meeting FY27 IPO DPU forecast of 6.82 S cents due to a ramp-up in occupancy, lease renewals and stronger contributions from JVs, which offset the initial earnings shortfall in 1QFY27.
Leases representing 11.2% of gross rental income are due for renewal over the rest of FY27, with 78% under advanced negotiations. ALICE@Mediapolis and 351 Braddell Road could provide a rental uplift in 2HFY27.
Maintain BUY. Target price: S$1.16.
Analysis
UI Boustead REIT (UIBREIT) is differentiated by:
The sponsor, UIB Holdings, has a proven track record in developing industrial properties, particularly in Singapore and Japan. It has developed 20 of its 21 Singapore properties. 17 of the 20 properties are built-to-suit facilities developed on JTC land or JTC's direct land allocations, which serve as tenants’ strategic infrastructure.
UIBREIT has a long portfolio WALE of 5.4 years (top 10 tenants: 7.8 years), which provides income stability. Its second largest tenant, a leading global aerospace corporation, has committed to two leases for 23 years and one lease for 16 years.
Management is confident of meeting FY27 IPO DPU forecast of 6.8 S cents due to a ramp-up in occupancy, lease renewals and stronger contributions from JVs, which offset the initial earnings shortfalls in 1QFY27.
Positive leasing momentum in Singapore. Occupancy for the Singapore portfolio had improved 0.7ppt to 97.0% as of Jun 26. UIBREIT secured a new lease with a globally recognised fast-food chain for its Singapore headquarters at 27 Tai Seng Street. It clocked positive rental reversion of 2.6% in 1QFY27. UIBREIT has commenced a S$2.6m AEI at 84 Boon Keng Road to reposition the property from single-tenant use (previously occupied by AUMOVIO) to multi-tenant use. 40% of its NLA is already pre-committed ahead of the targeted completion by end-26. It has secured higher rents at mid-to-high S$3psf/month, compared with the previous low of S$2psf/month.
Positive rental reversion in Singapore. UIBREIT registered positive rental reversion of 3.4% for business space in Singapore in 1QFY27. Leases representing 11.2% of gross rental income are due for renewal over the rest of FY27, with 78% already under advanced negotiations. Ongoing discussions for business park property ALICE @ Mediapolis and hi-spec building 351 Braddell Road could drive a rental uplift in 2HFY27.
Highlights
Management is confident of meeting FY27 IPO DPU forecast of 6.82 S cents due to a ramp-up in occupancy, lease renewals and stronger contributions from JVs, which offset the initial earnings shortfall in 1QFY27.
Leases representing 11.2% of gross rental income are due for renewal over the rest of FY27, with 78% under advanced negotiations. ALICE@Mediapolis and 351 Braddell Road could provide a rental uplift in 2HFY27.
Maintain BUY. Target price: S$1.16.
Analysis
UI Boustead REIT (UIBREIT) is differentiated by:
The sponsor, UIB Holdings, has a proven track record in developing industrial properties, particularly in Singapore and Japan. It has developed 20 of its 21 Singapore properties. 17 of the 20 properties are built-to-suit facilities developed on JTC land or JTC's direct land allocations, which serve as tenants’ strategic infrastructure.
UIBREIT has a long portfolio WALE of 5.4 years (top 10 tenants: 7.8 years), which provides income stability. Its second largest tenant, a leading global aerospace corporation, has committed to two leases for 23 years and one lease for 16 years.
Management is confident of meeting FY27 IPO DPU forecast of 6.8 S cents due to a ramp-up in occupancy, lease renewals and stronger contributions from JVs, which offset the initial earnings shortfalls in 1QFY27.
Positive leasing momentum in Singapore. Occupancy for the Singapore portfolio had improved 0.7ppt to 97.0% as of Jun 26. UIBREIT secured a new lease with a globally recognised fast-food chain for its Singapore headquarters at 27 Tai Seng Street. It clocked positive rental reversion of 2.6% in 1QFY27. UIBREIT has commenced a S$2.6m AEI at 84 Boon Keng Road to reposition the property from single-tenant use (previously occupied by AUMOVIO) to multi-tenant use. 40% of its NLA is already pre-committed ahead of the targeted completion by end-26. It has secured higher rents at mid-to-high S$3psf/month, compared with the previous low of S$2psf/month.
Positive rental reversion in Singapore. UIBREIT registered positive rental reversion of 3.4% for business space in Singapore in 1QFY27. Leases representing 11.2% of gross rental income are due for renewal over the rest of FY27, with 78% already under advanced negotiations. Ongoing discussions for business park property ALICE @ Mediapolis and hi-spec building 351 Braddell Road could drive a rental uplift in 2HFY27.
BUY (Maintained)
Current price:
Target price:
Upside:
S$0.835
S$1.16
38.9%
Analyst
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