SINGAPORE (Oct 13): Soilbuild Business Space REIT of business parks and industrial properties, has declared a DPU of 1.374 cents for the 3Q17 ended Sept, 1.8% lower compared to 1.399 cents from a year ago.
Gross revenue rose 4.1% to $20.5 million while net property income rose 3.0% to $17.8 million due to higher revenue from Bukit Batok Connection, West Park BizCentral, Solaris, Tuas Connection and Tellus Marine.
However, this was partially offset by reduction in revenue from 72 Loyang Way, upon the full utilisation of security deposit in 2Q17.
Property expenses were 11.3% higher due to higher property operating expenses for 72 Loyang Way and Bukit Batok Connection.
Distributable income fell 0.8% to $14.4 million from $14.6 million.
Occupancy rate improved to 94.1% in 3Q17, contributed by higher occupancy at West Park BizCentral and 72 Loyang Way of 95% and 27% respectively.
In 3Q17, Soilbuild REIT’s weighted average borrowing cost was 3.32% p.a. As at Sept 30, its weighted average debt expiry stood at 2.1 years and interest rate exposure was 63.9% fixed for the next 1.5 years.
Roy Teo, CEO of the manager, says: “We are pleased to deliver 3Q FY2017 DPU of 1.374 cents. The Singapore economy is experiencing a mixed sectoral growth with robust growth in the electronics and precision engineering sectors but persistent contraction in the general manufacturing and transport engineering clusters.”
Units in Soilbuild REIT closed at 70 cents on Friday.
