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.
Risky Business
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.
Agreed with your comments and action to sell given the high oil and gas tenant base.
Btw which Reit you have identified to be a better investment even in the current high run up in prices in the Reit sector? First Reit? Tks
Hi Hong, I love retails REITs. If you are looking for office REITs, then Frasers Commercial Trust is my preferred REIT.
Hi there,
Retails reit – how about starhill, mct and cmt?
Cheers
snowieee
Hi Snowieee, you can find them under my Personal Analysis.