Brokers' take

Soilbuild Business Space Reit I HOLD (changed) Jan 23 close: S$0.62 Target price: S$0.62 OCBC Investment Research, Jan 23

SOILBUILD REIT's Q4 2018 results were above expectations due to a one-off item. Q4 2018 distribution per unit (DPU) increased 16.5 per cent quarter-on-quarter and 4.9 per cent year-on-year to 1.451 Singapore cents mainly due to S$3.25 million in liquidation proceeds received from Technics Offshore Engineering.

On a full-year basis, FY18 DPU fell 7.5 per cent year-on-year to 5.284 Singapore cents or 104.5 per cent of our initial full-year forecast. Without the one-off item, Q4 2018 DPU would have fallen 8.1 per cent quarter-on-quarter and 17.3 per cent year-on-year to 1.144 Singapore cents, while FY18 DPU would have fallen 12.9 per cent year-on-year to 4.98 Singapore cents or 98.5 per cent of our initial full-year forecast.