UOL’s management said its focus is on “Total Portfolio Management” where the Group will divest non-core assets and reinvest in higher-yielding ones, demonstrating the Group’s ability to deploy capital effectively. “As part of the Group’s overall strategy, different options to create, improve and unlock shareholder value are evaluated. The Group is open to exploring a REIT structure, however this is dependent on market conditions,” it added.
Could UOL Group list a REIT? This is what CLSA suggests in a report dated Sept 5. The initial thoughts of most readers and investors is that this is an unlikely occurence.
Interestingly, this is one of the questions posed to the management ahead of UOL Group’s AGM held on April 28. In questions to the management, an investor asked whether the board or management formally assessed the monetisation of investment properties via asset spinoffs, REIT listings, or stapled securities to unlock embedded value.
