Brokers' take

Soilbuild Business Space Reit | Buy Target price: S$0.69 July 18 close: S$0.65 OCBC Investment Research, July 18

Soilbuild Business Space REIT's (Soilbuild REIT) Q2 FY18 results were within expectations, with H1 FY18 net property income dropping 12.4 per cent year-on-year to S$33.2 million, or 50 per cent of our initial full-year forecast. H1 FY18 distribution per unit dropped a corresponding 12.4 per cent year-on-year to 2.588 Singapore cents, or 50.8 per cent of our initial full-year forecast.

We see signs of stabilisation on a quarter-on-quarter basis - Q2 FY18 net property income fell 4.4 per cent quarter-on-quarter and this was mainly due to the divestment of KTL Offshore in February 2018. The portfolio occupancy rate remains steady at 87.6 per cent.