Company Coverage
UI Boustead REIT (UIBREIT SP) 1QFY27: Yen Weakness Offset By Lower Electricity Tariff
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
S$0.81
S$1.16
+43.2%
S$1.17
Analyst
Highlights
- Lease commencement for a global e-commerce player was delayed by one month but occupancy at UIB Konan Phase 2 has improved to 100% since Jun 26. We trim our DPU forecast by 0.8% for FY27 and 1.2% by FY28 due to weakness in the Japanese yen against the Singapore dollar.
- Investors have reacted violently to a slight miss in 1QFY27. Rent reversion for the Singapore portfolio should improve in 2HFY27. Development projects are scheduled for completion in 2Q27 for UIB Konan Phase 3 in Greater Osaka and 2Q28 for built-to-suit aerospace facility in Seletar Aerospace Park.
Maintain BUY. UIBREIT provides an attractive DPU yield of 9.0% for FY27 and 8.8% for FY28 (CLAR: 5.9%, AAREIT: 6.1%). Our target price of S$1.16
is based on DDM (cost of equity: 7.25%, terminal growth: 1.2%).
Analysis
- UI Boustead REIT (UIBREIT) reported NPI of S$29.2m for the period from its listing on 12 Mar 26 to 30 Jun 26 (1QFY27).
- NPI was 4.3% below its IPO forecast due to:
a) The Japanese yen depreciated 1.8% against the Singapore dollar. UIBREIT had wanted to deploy NPI from Japan to fund reinvestment to UIB Konan Phase 3 at Greater Osaka, Japan. Thus, it did not hedge Japanese yen income, leading to lower contributions from Japan properties when
translated to Singapore dollars.
b) Lease commencement for a global e-commerce player occupying 125,000sf at UIB Konan Phase 2 (7.3% of total NLA) was delayed from May
to June, causing loss of income for one month. Occupancy at UIB Konan Phase 2 has improved to 100% since Jun 26.
- Contributions from JV income was 30.3% above forecast at S$3.3m, driven by better performance at Razer SEA HQ and 6 Tampines Industrial
Avenue 5 due to cost savings from lower electricity tariffs. UIBREIT has locked in electricity tariff rates at favorable levels for the next three years through to 2029 for its Singapore portfolio.
Committed portfolio occupancy reached 98.1% as of Jun 26, up from 89.4% in Sep 25. Portfolio WALE was healthy at 5.4 years. 78% of leases
expiring in the remainder of FY27 are already under advanced negotiations.
Highlights
- Lease commencement for a global e-commerce player was delayed by one month but occupancy at UIB Konan Phase 2 has improved to 100% since Jun 26. We trim our DPU forecast by 0.8% for FY27 and 1.2% by FY28 due to weakness in the Japanese yen against the Singapore dollar.
- Investors have reacted violently to a slight miss in 1QFY27. Rent reversion for the Singapore portfolio should improve in 2HFY27. Development projects are scheduled for completion in 2Q27 for UIB Konan Phase 3 in Greater Osaka and 2Q28 for built-to-suit aerospace facility in Seletar Aerospace Park.
Maintain BUY. UIBREIT provides an attractive DPU yield of 9.0% for FY27 and 8.8% for FY28 (CLAR: 5.9%, AAREIT: 6.1%). Our target price of S$1.16
is based on DDM (cost of equity: 7.25%, terminal growth: 1.2%).
Analysis
- UI Boustead REIT (UIBREIT) reported NPI of S$29.2m for the period from its listing on 12 Mar 26 to 30 Jun 26 (1QFY27).
- NPI was 4.3% below its IPO forecast due to:
a) The Japanese yen depreciated 1.8% against the Singapore dollar. UIBREIT had wanted to deploy NPI from Japan to fund reinvestment to UIB Konan Phase 3 at Greater Osaka, Japan. Thus, it did not hedge Japanese yen income, leading to lower contributions from Japan properties when
translated to Singapore dollars.
b) Lease commencement for a global e-commerce player occupying 125,000sf at UIB Konan Phase 2 (7.3% of total NLA) was delayed from May
to June, causing loss of income for one month. Occupancy at UIB Konan Phase 2 has improved to 100% since Jun 26.
- Contributions from JV income was 30.3% above forecast at S$3.3m, driven by better performance at Razer SEA HQ and 6 Tampines Industrial
Avenue 5 due to cost savings from lower electricity tariffs. UIBREIT has locked in electricity tariff rates at favorable levels for the next three years through to 2029 for its Singapore portfolio.
Committed portfolio occupancy reached 98.1% as of Jun 26, up from 89.4% in Sep 25. Portfolio WALE was healthy at 5.4 years. 78% of leases
expiring in the remainder of FY27 are already under advanced negotiations.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
S$0.81
S$1.16
+43.2%
S$1.17
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at the following link: https://research-api.uobkayhian.com/assets/disclaimer/df64a6ea-7980-447c-ae9e-fd19b93257dc, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
Related articles
24 Jul 2026
Keppel DC REIT (PREIT MK) : 1H26: Outlook Brightens In 2028
29 Jul 2026
Aztech Global (AZTECH SP) 2Q26: Weak Results And Outlook As Competition Heats Up; Downgrade To HOLD
28 Jul 2026
CSE Global (CSE SP) Houston Site Visit: Operations Intact And Growing Customer Breadth
Our latest research
29 Jul 2026
UI Boustead REIT (UIBREIT SP): 1QFY27: Yen Weakness Offset By Lower Electricity Tariff
29 Jul 2026
Frasers Centrepoint Trust (FCT SP): New Avenue To Generate Growth Via Development
29 Jul 2026