Broker: UOB Kay Hian
Date of Report: 28 July
Excerpt from UOB Kay Hian report.
Report Summary
UI Boustead REIT (UIBREIT SP) | BUY
Price: S\$0.84 Target Price: S\$1.17
- Action: BUY recommendation with a target price of S\$1.17.
- Key Highlights:
- Committed portfolio occupancy rose to 98.1% as of June, driven by successful leasing in Singapore and Japan.
- Singapore portfolio recorded 97.0% occupancy and positive rental reversion of 2.6%.
- Japan assets reached full occupancy, with long WALE (7.5 years) providing income visibility.
- Development investments and asset enhancements underway, including co-development projects and repositioning of properties.
- Prudent capital management: leverage at 36.4%, borrowing cost at 2.5%, 67% of debt fixed, no refinancing needs until FY29.
- Management remains confident in portfolio resilience and committed to delivering results in line with IPO forecasts.
Implications for Investors: The BUY call and target price of S\$1.17 imply confidence in portfolio growth, strong leasing momentum, disciplined capital management, and stable income from high occupancy and long lease tenures. The stock is positioned for resilience and future upside.
Above is an excerpt from a report by UOB Kay Hian. Clients of UOB Kay Hian can access the full research report from the broker’s website: UOB Kay Hian research website
