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Soilbuild Reit Q4 DPU up at 1.45 Singapore cents partially on on one-off liquidation proceeds

SOILBUILD Business Space Reit's distribution per unit (DPU) for its fourth quarter rose to 1.45 cents from 1.38 cents, lifted by one-off liquidation proceeds received from Technics Offshore Engineering and higher contribution from Solaris as well as its Australia acquisitions.

This came as Q4 income available for distribution increased 5.7 per cent to S$15.4 million from the previous year.

Books closure date will be Jan 29; distributions will be paid on Feb 28.Gross revenue went up 24.3 per cent to S$25.8 million from the previous year, thanks to liquidation proceeds from Technics Offshore Engineering and higher contribution from Solaris and the two Aussie properties, Inghams Burton and 14 Mort Street. Net property income grew 15.3 per cent to S$20.5 million from the preceding year.

For the full year, DPU eased to 5.28 cents from 5.71 cents. Income available for distribution fell 6.7 per cent to S$55.9 million.

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As at Dec 31, Soilbuild Reit saw a portfolio occupancy rate of 89.5 per cent and a weighted average lease expiry (by gross rental income) of 3.9 years.

Its aggregate leverage stands at 39.1 per cent.

The business space focused real estate investment trust (Reit) has 11 properties in Singapore and two properties in Australia.

Roy Teo, chief executive of the manager, said: “We have successfully raised S$65 million from a perpetuals issuance in September 2018 and completed the acquisition of two properties in Australia which are expected to strengthen the portfolio. Our focus in FY2019 will be to enhance our operational performance and prudently evaluate further growth opportunities in Australia to achieve sustainable returns for our Unitholders.”

The counter closed unchanged at S$0.605.