SINGAPORE (July 13): The manager of Soilbuild Business Space REIT has decalred a distribution per unit (DPU) of 1.466 cents for the second quarter ended June, a 6.3% decline from DPU of 1.565 cents a year ago.
Distributable income grew 4.3% to $15.4 million in 2Q17, from $14.7 million a year ago.
This was mainly due to higher total return before distribution, and partially offset by lower non-tax deductible items as a result of the absence of property and lease management fees payable in units.
Gross revenue was up 10.1% to $21.6 million in 2Q, compared to $19.6 million a year ago.
The increase in revenue was largely attributed to higher contribution from Bukit Batok Connection, West Park BizCentral, Solaris, Tuas Connection, and Tellus Marine, but partially offset by a reduction in revenue from 72 Loyang Way.
However, property operating expenses were 25.7% higher at $2.8 million in 2Q.
Consequently, net property income (NPI) grew 8.1% to $18.7 million in 2Q, from $17.3 million in the corresponding quarter last year.
Cash and cash equivalents stood at $10.8 million as at June 30, 2017.
“Despite a soft industrial market, the leasing team has secured more than 110,000 sq ft of new leases and completed more than 200,000 sq ft of renewals and forward renewals in this quarter, raising portfolio occupancy to 92.6%,” says Roy Teo, CEO of the manager.
“With 7.6% of the portfolio NLA expiring in the second half of 2017, the key asset management focus remains to retain existing tenants and improve occupancy in the multi-tenanted buildings and 72 Loyang Way,” Teo adds.
Teo also cautions that Soilbuild REIT’s distributable income will be negatively impacted until the manager finds a suitable replacement anchor tenant for 72 Loyang Way.
The distribution for 2Q will be payable to unitholders on Aug 18, 2017.
Units of Soilbuild REIT closed half a cent higher at 74 cents on Thursday.
