Boustead Singapore

[weijian]

In the 2021 EGM FAQs, management mentioned that the remaining properties, valued at around S$0.7 million, are mainly held by the JV. It's possible they plan to monetize these assets. I think this could be the one they intend to monetise but i can't reconcile to the recent announcement on the pan asia UIB fund which i thought is to sell their remaining stakes.

hi hancheng08,

The current announcement is focused in Singapore assets and therefore, we can exclude foreign assets/JV (eg. some of the Vietnamese ones). Similarly, I am not able to reconcile this REIT announcement with the UIB fund sale, since there may be overlaps. My best guess is that this REIT announcement may be complimentary to the UIB fund sale --> ie. a conversion of private fund mgt/assets of BSL/UIB to a publicly traded REIT.

[jaco]

Is it thinkable that the new REIT is initiated by a third party, neither Boustead nor UIB related. The announcement contains no real news facts. It feels like the response to a discovery/suspicion of insider information leaked during the negotiation process. Such a leak is much more likely when you talk with third parties rather than working internally. 

Just a few days ago, The Fifth Person showed that small cap REITs don't do well: https://www.youtube.com/watch?v=9Ck6WJ6eNZA  A pure Boustead REIT would likely be a small cap for a while. It would need its own board, meet regulatory requirements, its own paperwork etc, etc. It would be another sister company like Boustead Projects which was ultimately delisted due to lack of inspiration. In that light, inclusion of the properties in a larger REIT of a third party seems like a more logical next step.

[hancheng08]

In the 2021 EGM FAQs, management mentioned that the remaining properties, valued at around S$0.7 million, are mainly held by the JV. It's possible they plan to monetize these assets. I think this could be the one they intend to monetise but i can't reconcile to the recent announcement on the pan asia UIB fund which i thought is to sell their remaining stakes.

hi hancheng08,
The current announcement is focused in Singapore assets and therefore, we can exclude foreign assets/JV (eg. some of the Vietnamese ones). Similarly, I am not able to reconcile this REIT announcement with the UIB fund sale, since there may be overlaps. My best guess is that this REIT announcement may be complimentary to the UIB fund sale --> ie. a conversion of private fund mgt/assets of BSL/UIB to a publicly traded REIT.

I think the Vietnam assets with KTG are part of the UIB transaction based on the announcement. It's likely that the seed assets for the REIT will come from the JV-held properties, like Alice@Mediapolis. We will see how it unfolds.

[hancheng08]

Is it thinkable that the new REIT is initiated by a third party, neither Boustead nor UIB related. The announcement contains no real news facts. It feels like the response to a discovery/suspicion of insider information leaked during the negotiation process. Such a leak is much more likely when you talk with third parties rather than working internally. 

Just a few days ago, The Fifth Person showed that small cap REITs don't do well: https://www.youtube.com/watch?v=9Ck6WJ6eNZA  A pure Boustead REIT would likely be a small cap for a while. It would need its own board, meet regulatory requirements, its own paperwork etc, etc. It would be another sister company like Boustead Projects which was ultimately delisted due to lack of inspiration. In that light, inclusion of the properties in a larger REIT of a third party seems like a more logical next step.

There could be various reasons, perhaps for transparency as well. 
Maybe an email to their IR team can clarify things. 

Ultimately, a REIT's success depends on asset quality and managerial competence. 
Poor decisions, like overpaying for assets while issuing equity at a discount, will likely lead to a trading discount. 

Boustead is aware they need to perform well, given the track record of other S-REITs, to build unitholder trust. They have got a strong selling point with their Singapore assets, unlike recent IPOs that feature foreign assets with FX risks, which might be unfamiliar to Singaporean investors.

[Curiousparty]

With Razer SEA HQ, ALICE@Mediapolis and 6 Tampines Industrial nearing asset stabilisation, Mr Wong Yu Wei reported that BP Group’s pipeline of stabilised assets were expanding. These would bring the Company’s pipeline of stabilised assets to approximately S$600 million and the amount would further increase with the redevelopment of 36TR and the Bideford property.

Under volatile global market conditions, the Company foresaw some softness in capital
markets. The Management would continue to explore options to syndicate, dispose or inject them into BIF.

(extract from 2023 AGM Minutes for Boustead Project)

[Curiousparty]

🚨 **Boustead Singapore (SGX: F9D) – Value Unlocked?**
An in-depth piece by Harrison Brooks explores why Boustead might be at an inflection point, with catalysts aligning for a potential re-rating.

🔗 **Read the full article:**
[https://www.ainvest.com/news/boustead-si...play-2506/]

💬 **Summary of the Investment Thesis:**
Boustead is reviewing the potential divestment of its logistics and industrial assets into a REIT — a move that could significantly unlock value currently buried on its balance sheet. The company is trading at just **6.8x P/E**, despite strong earnings growth and a solid balance sheet.

🧠 **What stands out:**

* Strong insider alignment — CEO Fong Fui Wong holds 44% of the company.
* Recent 27% share price jump shows market is reacting to the REIT angle.
* Author suggests a target price of **S\$2.15** (based on historical P/E mean), with entry below **S\$1.30** and stop-loss below **S\$1.00**.
* Suggested holding period: 12–18 months to ride out REIT-related developments.

📌 *“Boustead Singapore is a classic ‘value with catalyst’ story… the REIT process could be the unlock investors have been waiting for.”*

🛡️ **Disclaimer:** This is not financial advice. Please conduct your own due diligence and consider your personal investment objectives before making any decisions.

[Bibi]

Sometimes I just dont bother reading those articles from wall straits and other foreign writers. how is the pe 6.8? strip away one off profits and non related operating profits like interest income and at current price is close to 14+ to 15.

[Curiousparty]

Even at $1.40, Boustead (SGX: F9D) looks remarkably undervalued when you break down its numbers:

• Market Cap: ~$650 million (500m shares x $1.39)
  
• Net Cash: ~$320 million
  
• Enterprise Value: ~$330 million
  
• EV per share: just $0.66
  

Let’s focus on just one segment: the geo-spatial division (Esri Australia, Singapore, Malaysia), which:

• Generates PBT of ~$50 million annually
  
• Runs on a recurring, asset-light model selling software and services
  
• Serves mission-critical functions for governments and enterprises
  
• Deserves a conservative P/E of 10–15x based on industry norms
  

At just 10x P/E, the geo-spatial segment alone should be worth $500 million – already 50% more than Boustead’s entire EV (ex-net cash)

That means:
✅ The geo-spatial segment alone justifies the entire valuation
✅ All other businesses — real estate (worth at least $600mil), engineering, strategic investments — come effectively for free
✅ Strong net cash of $320 million provides downside protection

Even after stripping out one-off gains, core EPS is ~$0.15, implying a P/E of only 4.4x on current price. That’s dirt cheap for a well-managed, diversified company with a long track record.

Verdict: Boustead is still in value territory. With re-rating potential and strategic monetization upside (e.g. recent UIB deal, potential REITS), this is one to watch.

[weijian]

Hi Curiousparty

Thanks for posting "your" thoughts on BSL. But may I remind you on the forum rules wrt to using AI curation:

https://www.valuebuddies.com/thread-1844...#pid167932

Moderator

[hancheng08]

how do you even get PE 4.4x? strange calculation again.