Soilbuild Business Space REIT (Soilbuild REIT) has recorded a DPU of 1.399 Singapore cents for its 3Q 2016, a decline of 13.9% compared to the 1.625 cents reported in the corresponding period of 2015.
Gross revenue and net property income (NPI) for the quarter saw a decline of 4.7%, and 2.9% to SGD20.7 million (USD15 million), and SGD17.8 million respectively.
Correspondingly distributable income for the period slid by 3.9% to SGD14.6 million.
The Singapore-listed REIT has attributed the quarter’s results to lacklustre occupancy, and softer demand for industrial spaces in Singapore.
However the industrial REIT’s overall occupancy rate of 94.8% recorded for 3Q 2016 was higher from the 92% in the previous quarter.
This was mainly due to higher occupancy at West Park BizCentral, and at its newly acquired industrial building known as Bukit Batok Connection.
“The challenge remains to improve occupancy rate in this subdued market while maintaining existing leases”, said Roy Teo, CEO of the REIT’s manager, in a statement on 12 October.
Teo also disclosed that 15.3% of its leases are expiring in the 2017 financial year, with 2.3% of these forward renewed.
The REIT’s gearing for the quarter was at 36%, with a weighted average all-in cost of debt of 3.42% as at 30 September 2016.
Units of Soilbuild REIT finished flat from its previous trading day on the Singapore Exchange to end at SGD0.71.