Soilbuild REIT 2Q19 net property income rises 13 percent

Soilbuild Business Space REIT’s Solaris, a state-of-the-art business park development. Source: the company.Soilbuild Business Space REIT’s Solaris, a state-of-the-art business park development. Source: the company.

Soilbuild Business Space REIT reported Wednesday its second quarter net property income increased 12.8 percent on-year to S$22.36 million, mainly on the conversion of Solaris to a multi-tenanted property and on contributions from two Australia properties.

Gross revenue for the quarter ended 30 June rose 19.4 percent on-year to S$22.6 million, the REIT said in a filing to SGX.

But it added the increased revenue was partially offset by lower contributions from the Eightrium and 39 Senoko Way properties.

The distribution per unit (DPU) was 1.179 Singapore cents for the quarter, dropping 6.7 percent form 1.264 Singapore cents in the year-ago quarter, the filing said.

Negative rental reversions of 2.0 percent and 6.9 percent were posted for renewals and new leases, respectively, during the second quarter, the REIT said.

Portfolio occupancy was at 88.6 percent at end-June, down from 89 percent at end-March, the REIT said.

For the first half, the REIT reported net property income rose 10.2 percent on-year to S$36.62 million on gross revenue of S$45.05 million, up 18 percent on-year. The first-half DPU was 2.377 Singapore cents, down 8.2 percent from 2.588 Singapore cents in the year-ago period, Soilbuild REIT said.

Soilbuild REIT’s portfolio has 11 properties in Singapore and two in Australia.

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