Boustead Singapore

[Curiousparty]

Most grateful if someone with the accounting expertise can help to work out the sum of parts or RNAV for Boustead taking into consideration its latest market valuations for all its properties - its BIF , Vietnam platform , yet to be divested properties worth $1.4bil …

Many tks

[hancheng08]

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.

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.

After taking a quick look at the annual report released recently, it make sense now.

(1) The sale to UIB probably only involves mainly the property/fund managers of Boustead Projects. This also explains why there is a sizeable 29mil FV gain I suppose, because generally the BIF assets are already at FV and therefore shouldn't attract much accounting gains.

(2) Since the real assets in BIF are not sold, they should be for consideration for the REIT IPO. As per page47 and page49 of AR25, BIF has 15 properties (total market value at 812mil) and balance sheet carries 9 properties either wholly/jointed owned (total market valuation 1.4bil) respectively. If the majority of these assets together with the singaporean ones on UIB are considered, there is enough scale.

(3) I think we can reasonably assume that the manager of the future REIT (if materializes) will be the same one managing UIB.

(1) I think there could be some gain due to their accounting policy - cost less depreciation for their investment properties.

(2) possible for the fund investor to either exit through IPO or sell down their stakes. I think the 9 properites need to exclude the hotel Como which is non-core, and is around $560m, so the valuation left is ~$900m. 
Best scenario is to REIT all their assets, which retail investors like us will benefit.

(3) yea pretty sure that is the case since they transfer their fund management to UIB.

[Curiousparty]

📊 Key Details from the 2021 Transaction:
Number of properties injected: 14 stabilised assets
Gross asset valuation at time of injection: ~S$579 million
One-off value-unlocking gain: ~S$131 million or 22.6% Gain.

[Curiousparty]

https://www.bousteadprojects.com/wp-cont...l-Fund.pdf

6) Is there an intention for BIF to be listed eventually?

Response: While the future listing for BIF is a possibility (subject to the approvals of BIF’s
investors), the Company’s immediate focus for BIF will be for it to be fully-operational
and be able to grow sustainably, along with the Company’s other fund management
platforms, through participation in new acquisitions and/or developments.

[Curiousparty]

Take the Boustead Real Estate Fund as an example.

The fund has a market value of approximately $812 million, while its net assets stand at only $45.675 million. It also holds non-current liabilities—assumed to be long-term debt—of $131.657 million.

If the assets were to be recycled into a REIT, the potential revaluation gain would be:

$812 million (MV) – $45.675 million (carrying value) – $131.657 million (pay down long term debt) = $634.668 million

Assuming Boustead owns a 51% stake, its share of the revaluation gain would amount to approximately $323 million or $0.65 EPS uplift?

not sure if my interpretation is correct?

[Curiousparty]

Take Bideford House as another example.

The current market valuation is estimated to be at least S$680–700 million, and Boustead holds a 50% stake in the property.

Based on the financials:
Boustead’s carrying amount for its 50% share is only S$98.361 million.
The long-term debt on the property is approximately S$373.6 million, of which Boustead’s share is around S$187 million.

If the property were to be revalued and monetized at S$680 million, the revaluation gain attributable to Boustead would be:
S$340 million (Boustead’s share of MV) – S$98.4 million (carrying value) – S$187 million (share of debt) = S$54.6 million

This could translate to an estimated earnings per share (EPS) uplift of ~S$0.11, assuming a one-off recognition of the gain.

[Curiousparty]

At ~S$1.62 per share, Boustead’s market capitalisation is roughly S$800 million.
The group sits on about S$326 million of net cash (≈ S$0.65 per share).
Backing that cash out means the market is valuing the entire operating business and property portfolio at just ~S$1.00 per share, or about S$500 million in total.

Put another way, you’re paying S$1.62 for a company that already has S$0.65 in the till—so the rest of the business is effectively on sale for one Singapore dollar. Does that pricing make financial sense?

For just S$1 (after net cash is backed out), you’re effectively getting the following:
a. Geospatial division generating around S$50 million in EBIT annually (PE should be at least 15 times or $1.50 valuation
b. Energy engineering segment with approximately S$30 million in annual EBIT (PE should be around 8 times) or $0.48 valuation
c. Boustead Projects, with a gross market valuation of over S$1 billion (Boustead’s share). Revaluation Gain around $1.40 to $1.50
d. Healthcare segment with long-term growth optionality (can assign zero valuation for now...)
Total valuation = $3.38 (item a to d), for the price of just $1...

Sounds like a very good deal?

[Curiousparty]

Boustead’s Geospatial Division: A Hidden Software Powerhouse
https://www.investingnote.com/posts/2965178

When benchmarked against global peers like Hexagon AB, Trimble, Bentley Systems, and Autodesk, which trade at 18–25× EV/EBITDA, Boustead’s geospatial business alone is potentially worth S$1.13 to S$1.58 billion. This equates to S$2.27 to S$3.15 per share — already exceeding Boustead’s current share price of ~S$1.60.

‌

With long-term secular tailwinds — from smart cities to environmental monitoring — and a sticky customer base, the division has all the hallmarks of a premium software asset. A spin-off, trade sale, or even a partial monetization could unlock massive shareholder value.

================

More Than Meets the Eye: Boustead Singapore’s Hidden Asset Value

https://www.investingnote.com/posts/2964805

More Than Meets the Eye: Boustead Singapore’s Hidden Asset Value

[weijian]

A detailed AGM MoM as usual, for non shareholders like me to understand more (and like) the business. Because BSL's balance sheet has different real estate assets with different accounting treatment and hence how Wong Junior classifies it below is good for clarity.

I speculated that FF Wong would eventually sell out their fund mgt business (like how ESR mopped up multiple fund mgrs in the prior decade) for cash but it was a master move to instead take the 20% UIB stake instead. This builds up scale slowly (even though it is still small) and the 20% stake allows recognition of associate's share of results on the accounting side. There will be 3 pools of industrial assets - (1) BIF - private funds (SEA focused), (2) UIB - private funds (Jap/China focused) and the (3) public REIT in planning. Having both private and listed funds across different geographies under one's mgt is a very synergistic business combination I would say.

MINUTES OF ANNUAL GENERAL MEETING HELD AT MEETING ROOM 334-336 (LEVEL 3), SUNTEC SINGAPORE CONVENTION & EXHIBITION CENTRE

Mr Wong Yu Wei then gave an overview of the different real estate platforms across asset classes, which comprise:-

• UIB – platforms like the Boustead Development Partnership and Boustead Industrial Fund that were previously under the division are now under the UIB platform which has AUM of approximately S$4.7 billion;

• Bideford House and the COMO Metropolitan Hotel - AUM of approximately S$0.6billion; and

• other diversified properties – AUM of approximately S$1.5 billion.

Referring to the REIT that is among the options being explored in relation to UIB, Mr Subnani asked whether Boustead Projects’ Singapore logistics and industrial real estate assets would be injected into the REIT.

Mr Wong Yu Wei said UIB is a funds management business while Boustead Projects retains ownership of its logistics and industrial real estate assets. In the event of a listed REIT being established, Boustead Projects will have the option of injecting the ownership of its stabilised assets into the REIT. Likewise, the investors of Unified Industrial funds will have the option of injecting its assets in Japan into the REIT. If both parties inject their assets into the listed REIT, the REIT manager will be under UIB.

Mr Sanford Chee requested for further background on the relationship with the partners of UIB and how management came to the conclusion that they are the right partners. Mr Wong Yu Wei said Boustead Projects started off as an engineering and construction business. Over time, it began to take on developments on its own and also through joint ventures on an ad hoc basis. Around seven to eight years ago, it started to court institutional investors and as part of this, it had to beef up its funds management team.

Management realised very quickly that the funds management business needed to scaled up. With Unified Industrial, management found a partner that met its requirements – an alignment of business plans, access to capital and a ready platform of assets in China and Japan. Responding to Mr Chia Seow Hwee’s query on whether Boustead Projects would be deriving fee income from UIB, Mr Wong Yu Wei said UIB is a similar but bigger platform that will earn fees from managing the larger number of portfolio assets. However, as UIB is in growth mode, it is envisaged that such fee income will be re-invested, and Boustead Projects is not expected to receive dividends from UIB in the short term.

AGM2025 MoM:
https://links.sgx.com/FileOpen/Boustead%...eID=856588

P.S. Just wondering why didn't they show "support" for COMO Orchard by holding the AGM there?