Soilbuild Reit posts 6.3% drop in Q2 DPU

SOILBUILD Business Space Reit (Soilbuild Reit) on Thursday reported an 8.1 per cent year-on-year increase in net property income for the second quarter to S$18.7 million.

For the three months ended June 30, 2017, the Reit recorded a distribution per unit (DPU) of 1.466 Singapore cents, down 6.3 per cent from 1.565 Singapore cents a year ago. Distributable income rose 4.3 per cent to S$15.4 million.

SB Reit Management, the manager of Soilbuild Reit, said that gross revenue and net property income rose by 10.1 per cent and 8.1 per cent respectively due to higher revenue from Bukit Batok Connection, West Park BizCentral, Solaris, Tuas Connection and Tellus Marine. It was partially offset by reduction in revenue from 72 Loyang Way.

Soilbuild Reit's gross revenue stood at S$21.6 million for Q2 2017 while its half-year gross revenue rose 9.6 per cent to S$43.5 million.

Net property income for H1 2017 was S$37.9 million, a 9.9 per cent increase from the year before. Distributable income rose 5.5 per cent to S$30.9 million. DPU for H1 was 2.955 Singapore cents, down from 3.122 cents a year ago.

SB Reit Management said occupancy rate improved to 92.6 per cent in Q2, contributed by full occupancy at Eightrium and 22.8 per cent occupancy at 72 Loyang Way. The portfolio rental reversions were relatively flat, while forward renewals registered a negative rental reversion of 9.8 per cent, primarily due to "higher expiring rents secured two to three years ago when the rental index was at its peak".

Soilbuild Reit units closed at S$0.74 on Thursday, up half a cent or 0.68 per cent.