Company Coverage
UI Boustead REIT (UIBREIT SP): 1HFY27: Steady Progress On Leasing And Co-development
BUY (Maintained)
Current price:
Target price:
Upside:
S$0.785
S$1.16
47.8%
Analyst
Highlights
- UIBREIT delivered a maiden DPU of 3.71 S cents, which is 0.8% above the forecast contained in its IPO prospectus. Share of JV results was 31.6% above the forecast, driven by Razer SEA HQ and 6 Tampines Industrial Avenue 5 due to cost savings from lower electricity tariffs.
- Occupancy for logistics properties in Singapore dipped 2ppt qoq to 98% due to downsizing of 40,000sf by a tenant at 12 Changi North Way. Logistics properties in Singapore provided strong reversion of +9.2% in 2QFY27.
- UIBREIT provides attractive DPU yields of 9.0% for FY27 and 8.8% for FY28. Maintain BUY. Target price: S$1.16.
Analysis
- UI Boustead REIT (UIBREIT) delivered a maiden DPU of 3.71 S cents, which is 0.8% above the forecast contained in its IPO prospectus and in line with our expectation. The results cover property income earned from its listing on 12 Mar 26-30 Sep 26 (six months and 20 days).
- NPI affected by transitionary vacancy. Gross revenue and NPI came in 2.5% and 1.8% respectively, below the forecast for 1HFY27, reflecting lower occupancy and a weaker Japanese yen against the Singapore dollar. NPI margin was 79.6%, compared with the forecast margin of 79.1%, with lower property operating expenses partially offsetting pressure on rental income.
- Stronger JV contributions compensated for the NPI shortfall. The share of JV results reached S$6.0m, 31.6% above the forecast, driven by better performances at Razer SEA HQ and 6 Tampines Industrial Avenue 5 due to cost savings from lower electricity tariffs. Net finance costs were 6.5% above forecasts at S$8.1m, mainly because of higher borrowing costs in Japan.
Highlights
- UIBREIT delivered a maiden DPU of 3.71 S cents, which is 0.8% above the forecast contained in its IPO prospectus. Share of JV results was 31.6% above the forecast, driven by Razer SEA HQ and 6 Tampines Industrial Avenue 5 due to cost savings from lower electricity tariffs.
- Occupancy for logistics properties in Singapore dipped 2ppt qoq to 98% due to downsizing of 40,000sf by a tenant at 12 Changi North Way. Logistics properties in Singapore provided strong reversion of +9.2% in 2QFY27.
- UIBREIT provides attractive DPU yields of 9.0% for FY27 and 8.8% for FY28. Maintain BUY. Target price: S$1.16.
Analysis
- UI Boustead REIT (UIBREIT) delivered a maiden DPU of 3.71 S cents, which is 0.8% above the forecast contained in its IPO prospectus and in line with our expectation. The results cover property income earned from its listing on 12 Mar 26-30 Sep 26 (six months and 20 days).
- NPI affected by transitionary vacancy. Gross revenue and NPI came in 2.5% and 1.8% respectively, below the forecast for 1HFY27, reflecting lower occupancy and a weaker Japanese yen against the Singapore dollar. NPI margin was 79.6%, compared with the forecast margin of 79.1%, with lower property operating expenses partially offsetting pressure on rental income.
- Stronger JV contributions compensated for the NPI shortfall. The share of JV results reached S$6.0m, 31.6% above the forecast, driven by better performances at Razer SEA HQ and 6 Tampines Industrial Avenue 5 due to cost savings from lower electricity tariffs. Net finance costs were 6.5% above forecasts at S$8.1m, mainly because of higher borrowing costs in Japan.
BUY (Maintained)
Current price:
Target price:
Upside:
S$0.785
S$1.16
47.8%
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, 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.
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