Brokers' take

Soilbuild Reit HOLD Oct 16 close: S$0.705 Fair value: S$0.66 OCBC Investment Research, Oct 16

Q3 2017 DPU (distribution per unit) dropped 1.8 per cent yoy to 23.1 per cent of our full-year forecast, which we consider to be within expectations albeit on the lower end. 9M 2017 DPU came up to 72.9 per cent of our full-year forecast.

As discussed in our last report, Soilbuild Reit's trustee issued a letter of demand to master lease tenant NK Ingredients (NK) for arrears amounting to S$3.4 million, and has called upon an insurance guarantee amounting to S$5.1 million.