UI Boustead Reit closes 8.5% below IPO price amid broader market retreat
It is the first 2026 mainboard listing, and follows a strong offering pipeline in 2025
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[SINGAPORE] UI Boustead Real Estate Investment Trust (Reit), Singapore’s first mainboard and Reit listing for the year, fell at its trading debut on Thursday (Mar 12), along with broader losses in the Singapore market.
Its unit commenced trading at S$0.805, about 8.5 per cent below the initial public offering (IPO) price of S$0.88.
The counter rose to S$0.835, and ended the day at its opening price, with nearly 103 million shares transacted.
UI Boustead Reit’s IPO follows a strong offering pipeline in 2025, with about US$2 billion raised in proceeds, according to data from consultancy Deloitte. IPO proceeds came in at just US$34 million in 2024 and US$35 million in 2023.
Despite the counter opening at lower than its IPO price, Citi’s head of South-east Asia equity capital markets was positive about the Reit’s portfolio quality and its growth prospects.
Yew Jingkai, also flagging the market’s “proven track record for drawing global institutional capital into the sector”, said: “The IPO highlights Singapore’s strength as a leading global exchange for Reit listings.”
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Analysts from several research houses had previously expected Singapore’s 2025 momentum to keep building this year. They forecast about 20 listings this year, a strong turnaround from the lull between 2022 and 2024.
Tan Shu Lin, chief executive of UI Boustead Reit’s manager, acknowledged in a bourse filing on Thursday the “strong support” from investors “despite ongoing macroeconomic volatility”. The year has brought shocks to the Singapore and global markets following US action in Venezuela and now, Iran.
IPOs on the Singapore Exchange (SGX) largely gained in 2025, though NTT DC Reit units – which debuted in July – have spent most of the past months priced below their IPO price.
The listing of UI Boustead Reit brings the number of Reits and property trusts listed on the SGX to 42; their combined market capitalisation exceeds S$100 billion.
The latest IPO, which closed on Wednesday, comprised a public offer of 33.9 million units and an international placement of 643.3 million units. The public offer drew 4,697 valid applications for 99.9 million units, translating to a subscription rate of 2.9 times. In total, the exercise raised gross proceeds of about S$973.6 million.
The offering price represented a price-to-net asset value of one, with a projected distribution yield of 7.8 per cent for FY2027.
Investors in the IPO included JP Morgan Asset Management, Amundi and Amova Asset Management.
Following the offering, UI Boustead Reit’s total market capitalisation was just shy of S$2 billion. It aims to invest in logistics, general industrial, high-spec industrial and business-space properties in the Asia-Pacific.
The Reit will hold 21 assets in Singapore and two in Japan, valued at S$1.9 billion as at end-September. In the near to medium term, the portfolio will likely maintain a roughly 70:30 split between Singapore and Japan.
Overall portfolio occupancy is expected to rise from 89 per cent currently to 93 per cent by the end of March, and to 98 per cent in a year.
UIB, as the sponsor of the Reit, was formed through Unified Industrial’s acquisition of Boustead’s fund and property management business. Its assets under management in Asia total US$4 billion.
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