• Tuas View is Wee Hur’s flagship purpose-built workers’ dormitory. It has delivered strong, recurring revenue (e.g., ~S$84–93M in recent years, high 93–95% occupancy, and rental revisions). The current lease expires end-Oct 2026 with renewal discussions with JTC (the landlord) underway/under review. • Non-renewal would remove a major earnings contributor even though Wee Hur has a new dormitory (Pioneer Lodge) that has begun to contribute. • In addition, it has a robust construction order book, PBSA (student accommodation) growth in Australia/HK, and other property projects that provide diversification. FY2025 results were solid.
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Excerpts from CGS International report
Analysts: Natalie Ong & Then Wan Lin
■ We believe the land lease of Tuas View Dormitory will be extended at end-Sep 26, lifting the overhang on WHUR’s share price.
■ 47,400 beds are likely to come online over 2028F-30F but a bed shortage in the meantime makes Tuas View’s renewal highly probable, in our view. ■ Reiterate Add. We believe WHUR is a beneficiary of Singapore’s construction upcycle as well as strong demand for PBWAs and PBSAs. |
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| 27k workers needed over 2025-2028F to fulfil construction demand |
Based on work permits issued as at end-2025, we estimate bed supply is tight amid demand of 482.6k (Fig 1).
We forecast 27,000 more workers (Fig 2) will be needed in 2026F-28F as construction for several mega projects, namely Changi Terminal 5 (T5, construction to begin (TBC) mid-2030F) and Marina Bay Sands Integrated Resorts 2 (MBS IR2, TBC 2030F/31F), goes into full swing.
Retrofitting/new supply delays may lead to 2026F-28F bed shortfall
The Singapore government has followed through on its plan to increase purpose-built workers’ accommodation (PBWA) supply by 47,400 beds (Fig 3).
However, we think the initial 5-year delivery target (by end-2028F) is unlikely to be met, with some of the new supply only ready by end-2029F/1H30F.
Meanwhile, we estimate existing bed supply will be reduced by 5-10% over 2026F-28F as PBWA operators undertake retrofitting works to comply with the Ministry of Manpower’s (MOM) Dormitory Transition Scheme (DTS) by 2030.
AMOM launched the DTS grant (Fig 4) to partially defray the retrofitting costs PBWA operators will have to incur to conform.
As higher grant funding will be provided for operators who complete their retrofitting in Window 1 (2026F-28F) than Window 2 (2029F30F), more operators may choose to conduct retrofitting works in 2026F-28F.
Bed supply could be under pressure during 2026F-28F and we believe the government may decide to extend Tuas View’s lease for another 2-3 years while PBWA supply stabilises.
DTS compliance & huge 16k bed count increase odds of extension
Tuas View is Singapore’s largest PBWA, with a bed count of 15,744, and meets the DTS’s requirements.
Given this, we believe Tuas View Dormitory’s lease, which expires on 31 Oct 2026, will be extended by 2-3 years to stabilise bed supply during the 2026F-28F transition period as retrofitting works are rolled out and new supply progressively comes online.
WHUR’s management is also optimistic that the lease for Tuas View will be extended and expects to receive the lease extension by Sep 2026F.
Reiterate Add as we believe WHUR is a beneficiary of Singapore’s construction upcycle as well as strong demand for PBWAs and purpose-built student accommodation (PBSA).  Natalie Ong, analystOur SOP-based TP of S$0.95 is unchanged. Re-rating catalysts: new tenders for PBWAs/PBSAs in Singapore/Australia. Downside risks: non-extension of Tuas View Dormitory land lease, slow business sentiment impacting construction demand. |
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