Soilbuild Reit's Q1 DPU down 4.7%

SOILBUILD Business Space Reit (Soilbuild Reit)'s distribution per unit for the first quarter ended March 31 dipped 4.7 per cent from S$1.633 to S$1.557 while distributable income rose 9.6 per cent, from S$13.3 million to S$14.6 million.

Gross revenue for the quarter rose 8.2 per cent from S$18.6 million to S$20.1 million on the back of net property income rising 8.8 per cent from S$15.8 million to S$17.2 million.

Roy Teo, CEO of the manager, said: "Soilbuild Reit has continued to deliver a resilient performance amid the challenging industrial market. For Q1 FY2016, the fall in occupancy is partially cushioned by a 6.6 per cent positive rental reversion, despite several quarters of declining rental in various sub-industrial sectors.

"We are pleased to have Moody's assigning us an investment grade Baa3 rating which affirms our credit standing. The challenge ahead is to re-let the vacant space and renew 7.2 per cent of the multi-tenanted leases that are expiring for the rest of the year."