Boustead Singapore

[weijian]

Boustead Projects’ 20 percent stake in Unified Industrial (UIB) unlocks a new capital-light income stream. Unlike rental income, which requires heavy ownership, UIB earns steady fees from managing assets for institutional investors. Fees are based on assets under management (AUM), so as AUM grows, income grows.

Today, UIB manages about S$4.7 billion in assets. That equals roughly S$47 million in fee income each year, with Boustead’s share at about S$9 to 10 million. If UIB doubles to S$10 billion AUM, fee income could be S$100 million, and Boustead’s share would then be about S$20 million. At S$15 billion AUM, Boustead’s cut could rise to S$30 million.

For shareholders, this is significant. Boustead’s core profits are around S$60 to 70 million. The UIB stake could lift earnings by 30 to 40 percent, making it a hidden growth engine that scales with investor demand.

Hi Curiousparty,

There are at least 2 things that are off the mark:

(1) The first obvious one is you calculated UIB's fee income and then probably used BSL's share to drop that straight into the latter's core profits. This only make sense if UIB has zero operating expenses. FYI, the asset manager has to pay many expenses, for example personnel, agent (look for tenant) and many other fund/company running expenses (trustee, legal, backend) from the fee income they received as an asset mgr.

(2) Next, you assumed that the mgr fee is ~1% of AUM. I take reference from the biggest listed real estate mgr in Spore Capitaland Investment and below is how CLI charges fee income:

Listed funds: ~0.5% of FUM + divestment/investment fees of 0.5% of asset
Private funds: ~0.3% of FUM + "carry" (one time performance fees) that are paid out when the fund liquidates and performance achieves > target IRR.

UIB is a private fund and so it will probably charge less than that of listed funds. That said, I can't prove that UIB isn't charging 1% although I don't expect it to. I could be wrong and will be more than happy to be proven so if you have facts that show otherwise.

[LionFlyer]

They are going the centurion route with the planned IPO of the REIT (UIB). Given the scrip election is priced at 1.45, most people would choose the new shares now.

https://links.sgx.com/FileOpen/Boustead%...eID=858005

[Curiousparty]

https://www.nextinsight.net/story-archiv...e%E2%80%8C

Now, the Geospatial Division alone, with S$50 million in annual pre-tax profits, could be worth S$500 million at a conservative 10x P/E—more than the entire EV.

That means real estate (S$600-800 million in assets), energy (valued around S$250 million), and healthcare come essentially "free."

Excluding cash, earnings per share are about S$0.15, trading at a cheap 6.5x P/E despite being a diversified group with a solid track record.

Historically, Boustead's P/E ranged 10-12x, implying a fair value of S$1.50-1.80 from earnings alone.

Add back S$0.65 per share in cash, and you're looking at S$2.15-2.45— which represents 30-50% upside from S$1.60.

[Curiousparty]

Boustead’s “Double Bonanza” for Shareholders

Boustead Singapore Limited has announced a landmark set of transactions in connection with the proposed listing of UI Boustead REIT on the SGX. For shareholders, this move represents a rare “double bonanza”: an immediate financial windfall from property divestments, combined with long-term recurring benefits through a strategic stake in a new, billion-dollar REIT platform.

Immediate Gain from Divestments
Boustead, via its real estate arm Boustead Projects, will divest its stakes in four Singapore logistics and industrial properties to UI Boustead REIT. The total consideration for these sales is expected to be around S$62.1 million, with net proceeds of about S$57.8 million after transaction costs. Importantly, the properties are being sold at market valuations well above their book value, resulting in an estimated accounting gain of S$52.6 million.

This gain strengthens the company’s balance sheet and directly benefits shareholders. On a pro forma basis, Boustead’s Net Tangible Assets (NTA) per share will rise from 117.7 cents to 128.4 cents, while earnings per share (EPS) will jump from 19.6 cents to 29.2 cents. In simple terms, the company is reporting both stronger asset backing and higher profitability per share — an immediate uplift in financial quality.

Ongoing Stake in a Billion-Dollar REIT
The story does not end with the property sale. Boustead will also hold up to 16.9% of UI Boustead REIT upon listing. The REIT’s initial portfolio comprises 23 high-specification logistics, industrial, and business space properties across Singapore and Japan, valued at approximately S$1.9 billion. Boustead’s stake in the REIT would therefore be worth an estimated S$321 million at listing.

What does this mean for shareholders? At an assumed 5% distribution yield, Boustead’s stake could generate recurring annual income of about S$16 million. This ensures that the company continues to benefit from the rental income of the divested properties, while also gaining exposure to a broader, regionally diversified asset base. Shareholders are essentially receiving the best of both worlds: upfront gains and long-term income streams.

Strategic Benefits Beyond the Numbers
Beyond the financial metrics, this move achieves several strategic objectives. First, it unlocks and monetises the embedded value of Boustead’s industrial real estate portfolio. Second, it consolidates these holdings into a liquid, tax-efficient listed vehicle, giving Boustead greater flexibility and capital recycling capacity. The cash proceeds can be redeployed into expanding Boustead’s core businesses, funding growth initiatives, or seizing new opportunities in high-potential sectors.

Third, the REIT provides geographic diversification, particularly into Japan, with the potential to expand across other Asia-Pacific markets. This means Boustead shareholders indirectly gain exposure to high-growth logistics and industrial hubs beyond Singapore, while still enjoying the stability of a professionally managed REIT platform.

Conclusion
For shareholders, the benefits are clear: an immediate boost to profits and asset value, plus a continuing stake in a billion-dollar REIT expected to generate stable distributions. It is a classic case of creating both short-term value and long-term income — a true “double bonanza.” Boustead has not only unlocked hidden value from its property portfolio, but also positioned itself as a strategic investor in a Pan-Asian industrial real estate platform.

[weijian]

Well, there are a series of transactions to be executed, noticeably the entire BIF a private fund, going to be converted to a publicly listed fund. But I thought the below hybrid form of debt-equity ownership of 3 Spore industrial properties is the interesting matter. I suppose this is probably for a more "tax efficient" structure by incurring interest costs through the debt.

2) Overview of the IPO of UI Boustead REIT

UI Boustead REIT will hold approximately 49.0% interests in three REIT Entities but UI Boustead REIT is expected to derive 100.0% economic interests in respect of the three Singapore Properties through the partnership interests and investment in the bonds to be issued by the relevant REIT Entities (“Bonds”).

https://links.sgx.com/FileOpen/Boustead%...eID=859432