Soilbuild REIT: Strong maiden results Soilbuild Business Space REIT (Soilbuild REIT) reported a stronger-than-expected set of 3Q13 (period from listing date on 16 Aug to 30 Sep) results last evening. NPI came in at S$6.9m, 2.0% higher than its prospectus forecast of S$6.8m due to higher income contribution and lower property expenses from Eightrium and Tuas Connection.
Distributable income of S$6.1m and DPU of 0.76 S cents were also 3.1% and 3.0% above the respective prospectus forecasts due to higher net income and lower finance expenses. We note that Soilbuild REIT has achieved 100% retention rate for its leases, and has fully addressed its lease expiries for the year by renewing three leases (2.2% of portfolio NLA) at rental rates 7.9% higher than the preceding average passing rents.
In addition, portfolio occupancy inched up to 99.8% from 99.7% as at listing date. We will be speaking to management later for more details on its outlook. In the meantime, we maintain our BUY rating and S$0.82 fair value on Soilbuild REIT.
No comments:
Post a Comment