Interestingly, local interest rates remain at low levels. Overnight Sora has averaged 0.84% since the Monetary Authority tightened the S$NEER slope on Apr 14. Three-month compounded Sora which is currently at 1.04%, has been on a downtrend since January 2025 when it was at 3%.
JP Morgan upgraded UOL Group to an overweight on Apr 20 from neutral previously with a revised price target of $12, up from $9.55. The main reasons are: the 3Q2026 preview of Thomson Reserve with 1,240 units (in partnership with CapitaLand Development); the expected Marina Square redevelopment with further details likely to be revealed in 2Q2026; and the possibility of a REIT at some point.
“UOL's investment profile remains compelling with 10% three-year earnings Cagr, 85%-90% Singapore exposure by assets/Ebitda, and net gearing at a low 20%. The stock has outperformed the STI by 7% year-to-date but has underperformed by 5% since mid March. While we were previously concerned about an extended Iran conflict impacting hospitality RevPAR and residential sales, with progress on US-Iran talks and a potential reopening of the Straits of Hormuz, we expect the market to refocus on identifiable catalysts for UOL and narrow the valuation discount,” the JP Morgan report says.
