Singapore-listed industrial REIT, Soilbuild Business Space REIT, announced on 14 April that it has achieved a distribution per unit (DPU) of 1.557 Singapore cents for its 1Q 2016, a fall of 4.7% from the 1.633 cents in the corresponding period of 2015.
However gross revenue for the period increased 8.2% year-on-year to SGD$20.1 million while net property income (NPI) grew 8.8% to SGD17.2 million. Distributable income grew by 9.6% to SGD14.6 million for the period.
Portfolio occupancy rate was 94.8% as at 31 March 2016 with renewals achieving a positive rental uplift of 7.6%, said the REIT. Weighted average lease expiry (WALE) by gross rental income stands at 4.7 years.
“The fall in occupancy is partially cushioned by a 6.6% positive rental reversion, despite several quarters of declining rental in various sub-industrial sectors”, said Roy Teo, CEO of the REIT’s manager.
“The challenge ahead is to re-let the vacant space and renew 7.2% of the multi-tenanted leases that are expiring for the rest of the year”, he added.
Units of Soilbuild Business Space REIT finished about 0.67% higher from its previous close on the Singapore Exchange to end at SGD0.75.