UI Boustead Reit posts NPI of S$29.2 million, 4.3% below IPO forecast

[SINGAPORE] UI Boustead Reit reported net property income (NPI) of S$29.2 million for the period Mar 12 to Jun 30, in its first financial results since listing on Singapore Exchange’s mainboard.

It thus missed its initial public offering forecast for the period by about 4.3 per cent, said the manager of the real estate investment trust (Reit) on Monday (Jul 27).

This was mainly due to the weaker Japanese yen against the Singapore dollar, as well as a delay in lease commencement for a vacant unit at UIB Konan Phase 2, a logistics facility in Japan in the Reit’s portfolio, added the manager.

Share of results from joint ventures was S$3.3 million for the period, 30.3 per cent above the forecast. This was attributed to better performance at Razer SEA HQ and 6 Tampines Industrial Avenue 5.

Tan Shu Lin, CEO of the manager, noted that the Reit firmed up committed occupancy across three of its properties with uplift opportunities.

“We have also executed on our multi-pronged inorganic growth strategy where a key differentiator is the sponsor’s fully integrated real estate management platform,” she said.

“This has enabled UI Boustead Reit to access co-development opportunities with higher returns on a risk-mitigated basis in both Singapore and Japan.”

Committed portfolio occupancy was 98.1 per cent as at Jun 30, up from 89.4 per cent as at Sep 30, 2025.

The occupancy uplift was mainly driven by significant leasing progress made on three assets: 26 Tai Seng Street in Singapore, and UIB Konan Phase 2 and Toyo MK Fuso Building in Japan.

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The Singapore portfolio’s committed occupancy stood at 97 per cent as at Jun 30, with positive rental reversions of 2.6 per cent during the period.

The Japan portfolio reached 100 per cent committed occupancy as at Jun 30, an improvement from 76.7 per cent as at Sep 30, 2025.

Portfolio weighted average lease expiry remained long at 5.4 years.

Looking ahead, the Reit manager warned that the protracted Middle East conflict has led to significant global economic and inflationary pressures, increasing foreign exchange and interest rate volatility.

UI Boustead Reit, which had its trading debut on Mar 12, was the first mainboard and Reit listing of the year.

Its IPO followed a strong offering pipeline in 2025, with about US$2 billion raised in proceeds, according to data from consultancy Deloitte. Singapore recorded IPO proceeds of just US$34 million in 2024 and US$35 million in 2023.

Units of UI Boustead Reit closed S$0.005 or 0.6 per cent higher at S$0.84 on Monday, before the results were released.