I have long wanted to sell off SoilBuild Business Space REIT almost 1 year ago. Recently, I have divested all my holdings of SoilBuild Business Space REIT. Without dividends, I have made a loss of 11%. With dividends included, I have made a profit of 9%.
Below are my reasons for selling of SoilBuild Business Space REIT.
As we know, two tenants have defaulted over their rent (72 Loyang Way and NK Ingredients Pte Ltd). Blame it on poor economic outlook or collapse of marine oil and gas sector but as I wrote previously, 11% of Soilbuild Business REIT tenants are in the Marine Oil and Gas sector. This puts SoilBuild Business Space REIT in a high risky position should more tenants default their rent.
Declining Distribution Per Unit
Distribution Per Unit declines quarter on quarter. Given the declining share price and declining distribution, there is no reason I should be keeping this REIT.
Something Better to Buy
I am selling SoilBuild Business Space REIT as I have spotted something better to buy which I shall write in my upcoming post.