UI Boustead REIT: The Truth Behind Maybank's Aggressive Buy Call on This 8.6% Yield | EP1644🦖

The Investing Iguana

UI Boustead REIT: The Truth Behind Maybank's Aggressive Buy Call on This 8.6% Yield | EP1644🦖

A newly listed REIT falling almost 10 percent below its IPO price in under 90 days is not supposed to happen to a “safe” industrial name. When I saw Maybank slap a S$1.03 target and a BUY on UI Boustead REIT while the units were sliding, I wanted to know what the debt table was hiding. The deeper I went into the prospectus and the early numbers, the clearer it became that the story the brokers are selling and the risk you are actually underwriting are not the same thing.

If you are using CPF or SRS to chase that 8.7 percent forward yield at around S$0.785, you are accepting a 36.5 percent gearing ratio, an 8.1 times net debt to EBITDA load and a thin 4.7 times interest coverage buffer on a REIT with zero distribution track record. For someone in their fifties trying to protect a dividend portfolio, the real question is simple: does this income justify stepping over your own balance sheet rules just because three brokers are optimistic?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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When I saw Maybank slap a S$1.03 target and a BUY on UI Boustead REIT while the units were sliding, I wanted to know what the debt table was hiding. The deeper I went into the prospectus and the early numbers, the clearer it became that the story the brokers are selling and the risk you are actually underwriting are not the same thing.</p>\n<p style=\"text-align: left;\">If you are using CPF or SRS to chase that 8.7 percent forward yield at around S$0.785, you are accepting a 36.5 percent gearing ratio, an 8.1 times net debt to EBITDA load and a thin 4.7 times interest coverage buffer on a REIT with zero distribution track record. For someone in their fifties trying to protect a dividend portfolio, the real question is simple: does this income justify stepping over your own balance sheet rules just because three brokers are optimistic?</p></body></html>","htmlText":"<html><head></head><body><p style=\"text-align: left;\"></p>\n<p class=\"t-img-caption\"><img data-align=\"center\" src=\"https://community-static.tradeup.com/news/9269b20dafdb127d21d22a5b878bd575\" tg-width=\"1920\" tg-height=\"1080\"><span></span></p>\n<p style=\"text-align: left;\"><strong>UI Boustead REIT: The Truth Behind Maybank's Aggressive Buy Call on This 8.6% Yield | EP1644🦖</strong></p>\n<p style=\"text-align: left;\">A newly listed REIT falling almost 10 percent below its IPO price in under 90 days is not supposed to happen to a “safe” industrial name. When I saw Maybank slap a S$1.03 target and a BUY on UI Boustead REIT while the units were sliding, I wanted to know what the debt table was hiding. The deeper I went into the prospectus and the early numbers, the clearer it became that the story the brokers are selling and the risk you are actually underwriting are not the same thing.</p>\n<p style=\"text-align: left;\">If you are using CPF or SRS to chase that 8.7 percent forward yield at around S$0.785, you are accepting a 36.5 percent gearing ratio, an 8.1 times net debt to EBITDA load and a thin 4.7 times interest coverage buffer on a REIT with zero distribution track record. For someone in their fifties trying to protect a dividend portfolio, the real question is simple: does this income justify stepping over your own balance sheet rules just because three brokers are optimistic?</p></body></html>","text":"UI Boustead REIT: The Truth Behind Maybank's Aggressive Buy Call on This 8.6% Yield | EP1644🦖 A newly listed REIT falling almost 10 percent below its IPO price in under 90 days is not supposed to happen to a “safe” industrial name. When I saw Maybank slap a S$1.03 target and a BUY on UI Boustead REIT while the units were sliding, I wanted to know what the debt table was hiding. The deeper I went into the prospectus and the early numbers, the clearer it became that the story the brokers are selling and the risk you are actually underwriting are not the same thing. If you are using CPF or SRS to chase that 8.7 percent forward yield at around S$0.785, you are accepting a 36.5 percent gearing ratio, an 8.1 times net debt to EBITDA load and a thin 4.7 times interest coverage buffer on a REIT with zero distribution track record. 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