Key Strategies

UI Boustead REIT’s key objectives are to provide Unitholders with an attractive rate of return on their investment through regular and stable distributions, and to achieve long-term growth in distribution per Unit (DPU) and net asset value (NAV) per Unit, while maintaining an appropriate capital structure.

The REIT Manager will seek to achieve the REIT’s objectives through the following key strategies:

Proactive Asset Management and Enhancement Strategy

The REIT Manager will proactively manage the REIT’s portfolio using sustainable growth strategies, with the objective of driving growth in revenue and net property income, and maintaining optimal occupancy levels. The REIT Manager has a robust tenant management strategy, which focuses on building long lasting relationships with tenants, active leasing and marketing of vacant space, and achieving early renewal commitments. In order to enhance the long-term asset value of the REIT, the REIT Manager will formulate programmes for the regular maintenance of the properties, and asset refurbishment and enhancement projects to maintain the competitive position of the properties including exploring opportunities to redevelop and reposition existing properties to unlock value and optimise returns.

Investments and Growth Strategy

The REIT Manager will seek to grow DPU and NAV per Unit through sourcing and acquiring quality income-producing real estate used primarily for logistics, business space¹, Hi-Specs industrial and general industrial purposes in the Asia Pacific from both the Sponsor and third-parties. In addition, the REIT Manager will at its own discretion, evaluate and undertake value-adding co-development opportunities across Singapore and Japan in partnership with the Sponsor. The REIT Manager will adopt a rigorous selection process focused on long-term trends and fundamental real estate qualities to ensure that investments through acquisition and co-development opportunities can provide attractive, stable cash flows and yields which fit within the REIT’s investment strategy to enhance future earnings and capital growth and hence, returns to Unitholders.

Prudent Capital and Risk Management Strategy

The REIT Manager will endeavour to maintain a strong and robust balance sheet by among others, prudently employing an appropriate mix of debt and equity in financing investments and asset enhancements, and securing diversified funding sources. The REIT Manager will also seek to optimise the cost of debt financing, and utilise interest rate and foreign exchange hedging strategies where appropriate, in order to manage interest rate volatility and foreign exchange exposure for the REIT.

Best Practice Approach to ESG Commitments

Consistent with the values of the Sponsor and with guidance from the Board, the REIT Manager will employ a best practice approach to ESG commitments to achieve high sustainability standards in the operation and management of the REIT.

1	The term “business space” refers to commercial properties such as business parks, offices and/or near-city facilities that support knowledge-intensive, research, professional, technology, servicing and service-oriented business activities.