Boustead Singapore's stock fell 3.12% during intraday trading on Thursday, as investors reacted to the market debut of UIB REIT, in which the company holds a significant stake through its real estate arm, Boustead Projects.
The newly listed UIB REIT, which began trading on the SGX, is sponsored by UIB Holdings—a partnership that includes Boustead Projects. Post-IPO, Boustead Singapore is expected to retain between 15% and 16.9% of the REIT and has indicated plans to reinvest divestment proceeds back into UIB REIT units, signaling long-term commitment.
Market sentiment may have been influenced by the REIT's current occupancy rate of 89.4%, which is below that of more established industrial REITs, raising concerns about near-term income stability. Additionally, investors might be adjusting their portfolios in response to the IPO, leading to selling pressure on Boustead Singapore shares.