UIBREIT
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UI Bousted Reit - UIBU
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Stabilisation action ends today
minor edits to make it clearer.
Rule of Thumb
Treasury less than or equal to 3%: REITs yielding 6 to 7% look very attractive (spread 3 to 4%).
Treasury about 4 to 4.5%: REITs need to yield at least 7.5 to 8% to stay compelling.
Treasury more than or equal to 5%: REITs must push yields above 8.5 to 9% to maintain appeal, otherwise investors may rotate into bonds.
JurongW ( Date: 25-Mar-2026 02:27) Posted:
Here&rsquo s the full calibration run for UI Boustead REIT&rsquo s yield across unit prices from S$0.70 to S$1.00, using the projected annual distribution of S$0.06864 per unit (derived from IPO yield 7.8% at S$0.88).
📊 Yield Scenario Table
| Unit Price (S$) |
Annual Distribution
(S$0.06864) |
Yield (%) |
Spread vs. 10Y Treasury (4.4%) |
| 0.70 |
0.06864 |
9.81% |
+5.41% |
| 0.75 |
0.06864 |
9.15% |
+4.75% |
| 0.80 |
0.06864 |
8.58% |
+4.18% |
| 0.85 |
0.06864 |
8.07% |
+3.67% |
| 0.88 (IPO) |
0.06864 |
7.80% |
+3.40% |
| 0.90 |
0.06864 |
7.63% |
+3.23% |
| 0.95 |
0.06864 |
7.23% |
+2.83% |
| 1.00 |
0.06864 |
6.86% |
+2.46% |
✅ Interpretation
- Below 80¢ : Yield shoots above 8.5&ndash 9.8%, offering a very wide premium over Treasuries. Attractive, but signals market stress if price falls that low.
- 80&ndash 88¢ : Balanced zone &mdash yield ~7.8&ndash 8.6%, still comfortably above Treasuries.
- 90¢ &ndash $1: Yield compresses to 6.9&ndash 7.6%, narrowing the spread. Still positive, but less compelling versus risk‑ free bonds.
This table shows how price directly calibrates yield attractiveness vs. Treasuries.
For a REIT to remain attractive relative to Treasuries, the key is the yield spread &mdash the difference between the REIT&rsquo s distribution yield and the risk‑ free Treasury yield. Investors typically demand a premium of 3&ndash 4% (sometimes more) to compensate for property market risk, leverage, and liquidity compared to government bonds.
📊 Calibration Example (UI Boustead REIT)
- Projected REIT Yield: ~7.8% at IPO price (S$0.88).
- Current Treasury Yield: 4.4%.
- Spread: 3.4% &rarr still attractive, but not excessive.
🔑 Rule of Thumb
- Treasury &le 3%: REITs yielding 6&ndash 7% look very attractive (spread 3&ndash 4%).
- Treasury ~4&ndash 4.5%: REITs need to yield at least 7.5&ndash 8% to stay compelling.
- Treasury &ge 5%: REITs must push yields above 8.5&ndash 9% to maintain appeal, otherwise investors may rotate into bonds.
✅ Takeaway
For UI Boustead REIT specifically:
- At 7.8% yield, it remains attractive as long as Treasuries stay below ~4.5%.
- If Treasuries rise toward 5%, the REIT would need to trade lower (say ~80¢ , giving ~8.6% yield) to preserve a healthy spread.
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Here&rsquo s the full calibration run for
UI Boustead REIT&rsquo s yield across unit prices from
S$0.70 to S$1.00, using the projected annual distribution of
S$0.06864 per unit (derived from IPO yield 7.8% at S$0.88).
📊 Yield Scenario Table
| Unit Price (S$) |
Annual Distribution
(S$0.06864) |
Yield (%) |
Spread vs. 10Y Treasury (4.4%) |
| 0.70 |
0.06864 |
9.81% |
+5.41% |
| 0.75 |
0.06864 |
9.15% |
+4.75% |
| 0.80 |
0.06864 |
8.58% |
+4.18% |
| 0.85 |
0.06864 |
8.07% |
+3.67% |
| 0.88 (IPO) |
0.06864 |
7.80% |
+3.40% |
| 0.90 |
0.06864 |
7.63% |
+3.23% |
| 0.95 |
0.06864 |
7.23% |
+2.83% |
| 1.00 |
0.06864 |
6.86% |
+2.46% |
✅ Interpretation
- Below 80¢ : Yield shoots above 8.5&ndash 9.8%, offering a very wide premium over Treasuries. Attractive, but signals market stress if price falls that low.
- 80&ndash 88¢ : Balanced zone &mdash yield ~7.8&ndash 8.6%, still comfortably above Treasuries.
- 90¢ &ndash $1: Yield compresses to 6.9&ndash 7.6%, narrowing the spread. Still positive, but less compelling versus risk‑ free bonds.
This table shows how
price directly calibrates yield attractiveness vs. Treasuries.
For a REIT to remain
attractive relative to Treasuries, the key is the
yield spread &mdash the difference between the REIT&rsquo s distribution yield and the risk‑ free Treasury yield. Investors typically demand a
premium of 3&ndash 4% (sometimes more) to compensate for property market risk, leverage, and liquidity compared to government bonds.
📊 Calibration Example (UI Boustead REIT)
- Projected REIT Yield: ~7.8% at IPO price (S$0.88).
- Current Treasury Yield: 4.4%.
- Spread: 3.4% &rarr still attractive, but not excessive.
🔑 Rule of Thumb
- Treasury &le 3%: REITs yielding 6&ndash 7% look very attractive (spread 3&ndash 4%).
- Treasury ~4&ndash 4.5%: REITs need to yield at least 7.5&ndash 8% to stay compelling.
- Treasury &ge 5%: REITs must push yields above 8.5&ndash 9% to maintain appeal, otherwise investors may rotate into bonds.
✅ Takeaway
For UI Boustead REIT specifically:
- At 7.8% yield, it remains attractive as long as Treasuries stay below ~4.5%.
- If Treasuries rise toward 5%, the REIT would need to trade lower (say ~80¢ , giving ~8.6% yield) to preserve a healthy spread.
Have to see if there' s sufficient buyers to support the price once the stabilisaton acton ends.
tangsookiam1947 ( Date: 24-Mar-2026 21:05) Posted:
price looked very weak!! when will it fall below 80 cents!!
JurongW ( Date: 24-Mar-2026 18:01) Posted:
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price looked very weak!! when will it fall below 80 cents!!
JurongW ( Date: 24-Mar-2026 18:01) Posted:
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Anything is possible as the 10-year treasury yield remains elevated after the Fed meeting. As such, outlook is not positive for REIT/Business trust
If 80 cents can' t hold, then look at 75 followed by 70. The dividend yield gets even more attractive as share price goes lower.
tangsookiam1947 ( Date: 22-Mar-2026 17:28) Posted:
| will share price drop towards $0.70 if the stabilizing buying is gone? |
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will share price drop towards $0.70 if the stabilizing buying is gone?
Is the 30days calendar says or work days?
coco66 ( Date: 19-Mar-2026 11:36) Posted:
FYI:
coco66 ( Date: 13-Mar-2026 14:19) Posted:
ust a reminder for anyone rushing in after the first couple of days of trading.
UI Boustead REIT does have a price stabilising manager (DBS) for up to 30 days after IPO and about 54.6m units were over-allotted under the greenshoe arrangement. That means the price in the first few weeks can be supported by stabilisation purchases if selling pressure appears.
In other words, the current price may not yet reflect the true supply& ndash demand balance in the market. Once the stabilisation period ends (usually around 30 days after listing), that artificial support disappears.
Historically, quite a number of REIT IPOs only found their real trading level a few months after listing, once the early allocations and flipping settle.
Just something to keep in mind before chasing the price in the first few days.
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FYI:
coco66 ( Date: 13-Mar-2026 14:19) Posted:
ust a reminder for anyone rushing in after the first couple of days of trading.
UI Boustead REIT does have a price stabilising manager (DBS) for up to 30 days after IPO and about 54.6m units were over-allotted under the greenshoe arrangement. That means the price in the first few weeks can be supported by stabilisation purchases if selling pressure appears.
In other words, the current price may not yet reflect the true supply& ndash demand balance in the market. Once the stabilisation period ends (usually around 30 days after listing), that artificial support disappears.
Historically, quite a number of REIT IPOs only found their real trading level a few months after listing, once the early allocations and flipping settle.
Just something to keep in mind before chasing the price in the first few days.
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Heng to everyone who didn' t buy yesterday. I persoanlly had a strong hunch was the stabilising manager. Don' t fomo.
JurongW ( Date: 18-Mar-2026 18:42) Posted:
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Alignment ( Date: 18-Mar-2026 12:06) Posted:
In 6-9 months or so I see no reason why the share price of UI Boustead and Cent REIT would not be roughly the same.
It is more difficult to predict whether UI Boustead' s share price will rise to Cent REIT' s level (currently S$1.14), or whether Cent REIT' s share price will fall, or some third option. |
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In 6-9 months or so I see no reason why the share price of UI Boustead and Cent REIT would not be roughly the same.
It is more difficult to predict whether UI Boustead' s share price will rise to Cent REIT' s level (currently S$1.14), or whether Cent REIT' s share price will fall, or some third option.
