1. Investment Focus

UI Boustead REIT focuses on logistics, industrial, high-specification industrial, and business space assets within the Asia Pacific region.

2. Portfolio Overview

• Initial Portfolio: Comprising 23 properties, the portfolio consists of 21 leasehold properties in Singapore and 2 freehold properties in Japan. The total portfolio value is estimated at S$1.904 billion as of 30 September 2025.
  
• Geographical Breakdown: 71.2% of the portfolio’s value is derived from Singapore-based properties.
  
• Sponsor: UIB Holdings Limited, a fully vertically integrated Pan-Asian logistics and industrial real estate platform, holds approximately US$4.0 billion in assets under management as of 31 December 2025. The Sponsor has granted a voluntary Right of First Refusal (ROFR) for US$5.9 billion in assets for future growth.

3. Tenant Profile

• Sector Distribution: The tenant base is diversified with the following sector contributions:
  • Electronics & IT: 31.2%
  • Automotive, Aerospace & Avionics: 19.2%
  • Life Sciences: 14.8%
  • Top 10 Tenants: Representing 53.9% of the REIT’s net property income (NPI) as of September 2025.
    
• Key Tenants: The top 3 tenants contribute significantly to the NPI:
  • Leading aircraft manufacturer: 8.6%
  • Global technology company: 8.4%
  • GlaxoSmithKline: 7.8%
  • No other tenant contributes more than 6.2% to NPI.

4. Portfolio Performance (As of 30 September 2025)

• Singapore Properties:
  • Property Value: S$1.35 billion
  • Committed Occupancy: ~96.3%
  • WALE (Weighted Average Lease Expiry): 5.3 years
    
• Japan Properties:
  • Property Value: S$0.55 billion
  • Committed Occupancy: ~76.7%
  • WALE: 6.3 years

5. Occupancy & Lease Expiry

• Committed Occupancy: 89.4% across the portfolio.
  
• WALE: 5.8 years
  
• Lease Expiry Breakdown:
  • FY2026: 1.2% of leases
  • FY2027: 18.3% of leases
  • FY2028: 16.4% of leases
  • FY2029 or later: 64% of leases

6. Debt Profile

• Aggregate Leverage at IPO: 37.9%
• Interest Coverage Ratio: 4.7x
• Weighted Average Cost of Debt: 2.4%
• Weighted Average Debt Maturity: 4.2 years
• Debt Maturity Breakdown:
  • FY2029: 30.1% of borrowings
  • FY2030: 23.8% of borrowings
  • FY2031: 46.0% of borrowings

7. Financial Overview (Past 3 Financial Years)

• Gross Revenue:
  • FY2023: S$95.0m
  • FY2024: S$100.7m (+6.0% YoY)
  • FY2025: S$99.3m (-1.4% YoY)
  • FY2025 Decline Explanation: The decline was primarily due to lower occupancy at 26 Tai Seng Street (following a default by a prior anchor tenant) and at Toyo MK Fuso Building in Japan (following lease expirations). These declines were partly offset by new leases at higher rents at 12 and 16 Changi North Way.
    
• Property Operating Expenses:
  • FY2023: S$21.0m
  • FY2024: S$21.4m (+1.9% YoY)
  • FY2025: S$22.2m (+3.7% YoY)
    
• Net Property Income:
  • FY2023: S$74.0m
  • FY2024: S$79.3m (+7.2% YoY)
  • FY2025: S$77.1m (-2.8% YoY)
  • FY2025 Decline Explanation: The decline in NPI is attributed to lower occupancy at 26 Tai Seng Street and Toyo MK Fuso Building.
    
• Net Asset Value (NAV): S$0.85 per unit (FY2025)

8. NPI Forecast by Geography

• FY2026:
  • Singapore: 83.7%
  • Japan: 16.3%
    
• FY2027:
  • Singapore: 80.9%
  • Japan: 19.1%

9. Occupancy Rate Forecast

• FY2026 (31 March 2026): 93.1%
• FY2027 (31 March 2027): 98.3%

10. Distribution Forecast

• FY2026 (01 February 2026 to 31 March 2026):
  • Income Available for Distribution: S$14.8m
  • DPU (Distribution Per Unit): 1.1 cents/unit
  • Full-Year Distribution Yield: 7.4%
    
• FY2027:
  • Income Available for Distribution: S$93.5m
  • DPU: 6.8 cents/unit
  • Distribution Yield: 7.8% (based on offer price of S$0.88)

11. IPO Details

• Offer Price: S$0.88 per unit
• IPO Application Period: 5 March 2026 (from 9pm) – 10 March 2026 (till 12 noon)
• Listing Date: 12 March 2026 at 2.00pm

Closing Thoughts

One aspect I find appealing about UI Boustead REIT is that a significant proportion of its portfolio is located in Singapore. Based on projections, Singapore properties are expected to contribute more than 80% of the REIT’s net property income in both FY2026 and FY2027.

In terms of yield, the projected distribution yield of 7.4% places it on the higher end compared to many REITs currently listed on the Singapore Exchange.

Its balance sheet also appears relatively healthy, with aggregate leverage below 40% and only a small portion of borrowings due for refinancing over the next three financial years.

On the flip side, the occupancy rate of its two properties in Japan is somewhat on the lower side, standing at 76.7% as at 30 September 2025.

Another point worth noting is that the IPO offer price of S$0.88 is slightly above its net asset value of S$0.85 per unit.

Related Documents

UI Boustead REIT Prospectus

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