This comes as Soilbuild REIT faces potential overhang from its tenant, NK Ingredients, while around 148,500 sq ft of 72 Loyang Way which remains vacant may negatively impact year-end valuations.
SINGAPORE (Oct 16): Phillip Capital is downgrading Soilbuild Business Space REIT to “reduce” on worsening arrears, while raising its discount rate to 7.9% from 6.9% on the basis of higher uncertainty in future cash flows.
At the same time, the research house has lowered its target price on the REIT to 64 cents from 73 cents previously, which implies 0.9 times FY17 NAV.
