Soilbuild Reit's Q3 DPU up 20% to 1.1 cents

Singapore

SOILBUILD Business Space Reit (Soilbuild Reit) reported a 16.5 per cent increase in net property income to S$19.7 million for the third quarter to September.

The real estate investment trust (Reit) managed to generate a higher net property income as a reversal was made of allowance for doubtful receivables/provision for rent waivers of S$1.5 million as well as lower property taxes.

In a statement to the Singapore Exchange on Thursday, the Reit's manager said: "As at Sept 30, with better clarity on the amount of rent waivers required and having passed through a substantial portion of the rental waivers to our tenants, the allowance for doubtful receivables balance was reduced from S$2.1 million in Q2 FY2020 to S$0.6 million in Q3 FY2020."

Gross revenue was 8 per cent higher year-on-year at S$22.9 million, due to higher turnover from the newly acquired 25 Grenfell Street in Australia.

Total amount available for distribution rose 20.8 per cent year-on-year to S$14 million. This includes tax-deferred distribution from its Australian portfolio but excludes reimbursements received from vendors in relation to outstanding rental incentives subsisting at the point of the completion of acquisitions.

Distribution per unit was 1.1 cents, higher than the 0.918 cent a year ago.

Operating a portfolio of business parks and industrial properties, the Reit saw its occupancy rate rise 3.4 percentage points quarter-on-quarter to 92.9 per cent. Positive rental reversion of 1.3 per cent was recorded for new leases and 1.2 per cent for lease renewals during the quarter. Weighted average lease expiry by net lettable area and gross rental income stood at 2.9 years and 3.2 years respectively.

The counter closed down one cent at S$0.485 on Thursday, before the financial results were released.