Could UOL Group Unlock Value Through a REIT? CLSA Thinks So
SGX:U14.SI:UOL Group
SGX:C38U.SI:CapitaLand Integrated Commercial Trust (CICT)
SGX:T82U.SI:Suntec REIT
SGX:K71U.SI:Keppel REIT
SGX:D05.SI:DBS Group
CLSA, in a Sept 5 report, flagged a potential REIT listing as one of UOL Group’s biggest catalysts alongside the redevelopment of Marina Square. Such a move, it said, could help narrow UOL’s steep 58% discount to RNAV.
At UOL’s April 28 AGM, investors pressed management on whether the group had considered monetising assets via spinoffs, REIT listings or stapled securities. CEO Liam Wee Sin responded that UOL practices “Total Portfolio Management,” reinvesting from non-core disposals into higher-yielding assets. While open to a REIT, he stressed market conditions would be key. Chairman Wee Ee Lim added that sentiment and timing would also drive any decision.
Investor Sasono Adhiguna pointed out that UOL remains the only major Singapore developer without a REIT. Liam replied the group had a strong pipeline of mature assets and would weigh factors such as interest rates and yields before deciding.
CLSA highlighted that 86% of UOL’s $22.8 billion assets are in Singapore, mainly residential, office, retail and hotels. Of these, $12.7 billion are investment properties, largely offices. In 1H2025, UOL booked a $9.9 million fair value loss due to weaker valuations in Australia and the UK, though gains in Singapore offset some of the hit.
When compared to peers, UOL’s office portfolio is valued at $2,373 psf — about 14–17% below CICT, Suntec REIT and Keppel REIT. CLSA noted that while its older portfolio may limit uplift, improving office demand and easing rates could re-rate office REITs closer to book, with as much as 30% upside in three years.
Separately, UOL received provisional approval to redevelop Marina Square under the Strategic Development Initiative. DBS estimates this could triple the site’s valuation.
On the residential front, ParkTown Residences’ full sellout has given UOL a 23% market share in 1H2025. Analysts expect at least 1,500 units sold this year, with Skye @ Holland set to launch in 3Q2025.
CLSA initiated coverage on UOL with an Outperform rating and $10.50 target price. Shares closed Sept 5 at $7.30, up 41% year-to-date, but still well below its NAV of $13.59.
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