Soilbuild REIT's Eightrium in Changi Business Park (Photo: REITsWeek)

Soilbuild REIT has announced a distribution per unit (DPU) of 0.883 cents for the first quarter ended 31 March 2020.

Its year-on-year gross revenue rose 3.6% due to higher revenue from the newly acquired 25 Grenfell Street, and improved occupancy at West Park BizCentral.

However this was partially offset by lower contribution from 2 Pioneer Sector 1 which is pending redevelopment.

The REIT’s net property income (NPI) fell 5.1% on-year.

The decline was primarily attributed to higher property expenses for 25 Grenfell Street and an allowance for doubtful receivables, said the REIT.

The reduction in NPI and higher finance expenses resulted in a 26.3% reduction in DPU for the quarter, on a year-on-year basis.

Portfolio occupancy rate rose marginally quarter-on-quarter from 84.0% in 4Q FY2019 to 84.7% in 1Q FY2020.

The REIT successfully completed more than 238,000 square feet of renewals and new leases for the quarter.

Negative rental reversion of 14.0% was recorded for renewals and positive rental reversion of 3.9% was recorded for new leases in 1Q FY2020.

Weighted average lease expiry (WALE) by net lettable area and gross rental income stood at 2.8 and 3.4 years respectively.

The REIT’s aggregate leverage stood at 38.5% as at 31 March 2020.

Soilbuild REIT was last done on the Singapore Exchange at SGD0.37.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.