Soilbuild Business Space REIT (Soilbuild REIT) (SGX: SV3U), which listed on the SGX on last August, has announced a DPU of S$0.76 for its 3Q 2013. This is 3 per cent above the forecast made during its IPO.

Soildbuild Business Space REIT has seen occupancy improved due to the expansion of a tenant at the Eightrium

The DPU comes on the back of better-than-expected gross revenue and net property income figures for the quarter which similarly outperformed the original forecast by 0.8 per cent and 2.0 per cent respectively. Distributable income came in at S$6.1 million, which was 3.1 per cent higher than its prediction of S$5.9 million.

Soilbuild REIT has attributed the performance to lower than predicted operating costs.

Overall occupancy for the REIT has also improved during the quartet with portfoilio occupancy now at 99.8 per cent thanks to expansion of an existing tenant at the Eightrium. 3 lease renewals at the building and Tuas Connection also resulted in positive rental reversion of 7.9 per cent. There are no further leases due for the REIT for the rest of 2013.

Units of Soilbuild REIT are currently trading at S$0.755 on the Singapore Exchange.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.