UI Boustead's Cost of Debt Could Be Pressured by Higher Japan Interest Rates -- Market Talk

Dow Jones
05/25

0507 GMT - UI Boustead REIT's cost of debt could be slightly pressured by higher Japanese interest rates, says UOB Kay Hian's Jonathan Koh in a note. Yen-denominated loans account for 46% of the Singapore real-estate investment trust's total borrowings, the analyst notes. He estimates that the REIT's cost of debt could rise 15 bps to 2.65% if the three-month Tokyo interbank offered rate rises to 1.30%, compared with November's 0.80%. However, he reckons this would still be manageable for the REIT. UI Boustead's distribution yield remains attractive at 9.2% for FY 2027, he adds, noting peers' lower projected yields. UOB KH maintains its buy rating and S$1.13 target price. Units rise 3.2% to S$0.805. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

May 25, 2026 01:07 ET (05:07 GMT)

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