Broker: Maybank Research Pte Ltd
Date of Report: July 29, 2026
Excerpt from Maybank Research Pte Ltd report.
Report Summary: UI Boustead REIT (UIBREIT SP)
- Action/Recommendation: BUY
- Target Price: SGD 1.03 (implies +27% upside)
- Current Price: SGD 0.81
- Ticker: UIBREIT SP
Key Highlights & Actionable Insights:
- Occupancy: Committed occupancy reached 98.1%, significantly above the IPO assumption of 89.4%. This improvement supports a positive rental reversion (+2.6% in Singapore).
- Financials: Net property income (NPI) was SGD 29.2m, 4.3% below IPO forecast, mainly due to JPY weakness and a delayed lease start in Japan. However, share of results from JVs was 30.3% above forecast, driven by higher electricity income and better JV asset performance.
- Debt Metrics: Gearing remains stable at 36.4% (below IPO’s 37.9%). Cost of debt is expected to rise from the current 2.5% but remains manageable.
- Risks: Main risks include continued JPY depreciation (every 10% drop in JPY/SGD reduces FY27 distribution by 2.6%), lease non-renewals, and potential delays in income commencement from committed space.
- Growth Drivers: Additional income expected from asset enhancement initiatives (AEI) at 84 Boon Keng Road, which is 40% pre-leased and should start contributing before completion. Co-development projects in Japan and Singapore are progressing as planned.
- Dividend Yield: Attractive estimated DPU yield of 8.4% for FY27E and 8.8% for FY28E.
Implications:
- Despite short-term FX headwinds, high occupancy, stable gearing, and supportive income from AEI and JVs underpin the BUY call. Investors can expect robust yields and potential upside as the REIT executes on its growth pipeline and manages FX risk.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can access the full research report from the broker’s website.
