Soilbuild REIT reports 3Q19 net property income rose nearly 5 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 third quarter net property income rose 4.5 percent on-year to S$16.95 million on contributions from two Australia properties acquired in October 2018 and on converting Solaris into a multi-tenanted property in August 2018.

Gross revenue for the quarter ended 30 September increased 7 percent on-year to S$21.19 million, the REIT said in a filing to SGX.

The higher revenue was partly offset by lower contributions from the NK Ingredients, Eightrium and 39 Senoko Way properties, the REIT said.

The distribution per unit (DPU) for the quarter was 0.918 Singapore cent, down 26.3 percent from 1.245 Singapore cents in the year-ago quarter, the filing said.

The decline in DPU was due to a larger number of units after a preferential offering and on the cessation of revenue from NK Ingredients, Soilbuild REIT said.

Portfolio occupancy slipped to 88.4 percent in the third quarter from 88.6 percent in the second quarter, the REIT said.

Soilbuild REIT said it completed more than 76,600 square feet of renewals in the quarter and obtained around 87,800 square feet of new leases. Positive rental reversion of 8.5 percent was posted for renewals, while the quarter’s new leases had negative rental reversions of 9.3 percent, the REIT said.

For the nine-month period, Soilbuild REIT reported net property income rose 8.3 percent on-year to S$53.57 million on gross revenue of S$66.24 million, up 14.2 percent on-year. The DPU for the January-to-September period was 3.295 Singapore cents, down 14 percent from 3.833 Singapore cents in the year-ago period, the REIT said.

While you’re here, we’re hoping you can help us out.

Shenton Wire has been providing you with quick news and market analysis. But we need your support to continue to bring you the news you’ve come to expect and to expand our reach beyond Singapore.

Your monthly contribution will directly fund our journalism.

S$2     S$4       S$8

S$18       S$28       S$88

We also accept PayPal contributions

Check your existing account here and sign in to Shenton Wire here.

Contact us about other contribution levels or for corporate subscriptions and article syndication.