Soilbuild REIT has announced a distribution per unit (DPU) of 1.179 cents for the second quarter ended 30 June 2019, a fall of 6.7% from the 1.264 cents in 2Q 2018.
The REIT’s gross revenue and net property income for 2Q FY2019 rose 19.4% and 12.8% respectively mainly due to the conversion of Solaris into a multi-tenanted property and contribution from two Australia properties.
However, the increase in revenue was partially offset by lower contribution from Eightrium and 39 Senoko Way.
The lower occupancy in Eightrium, and the depletion of the security deposit from the previous master lessee of 39 Senoko Way resulted in distributable income slipping by 6.0%.
Portfolio occupancy rate declined from 89.0% in 1Q FY2019 to 88.6% in 2Q FY2019.
Negative rental reversions of 2.0% and 6.9% was recorded for renewals and new leases respectively in 2Q FY2019.
Aggregate leverage stood at 39.4% as at 30 June 2019.
With regards to NK Ingredients’ lease, Soilbuild REIT’s manager is still in discussion with the tenant’s creditor.
“We are actively engaging the various stakeholders including prospective end-users in our efforts to minimise loss of rental”, said the REIT.