Soilbuild REIT DPU Fall for 1QFY2016

Soilbuild REIT Logo

Soilbuild REIT announces its results for 1QFY2016 on 21st January 2016. Gross revenue increased 8.2% to S$20.1 million and net property income (“NPI”) grew 8.8% to S$17.2 million. Distributable income rose 9.6% to S$14.6 million from S$13.3 million in 1QFY2015.

Distribution Per Unit (DPU) fell 4.7% to 1.557 cents as compared to 1.633 cents a year ago. The annualised distribution yield is 8.5% based on the closing price of S$0.73 as at 31st March 2016.

(S$ ‘000)
Gross Revenue20,14218,6158.2
Net Property Income17,19315,7988.8
Distributable Amount14,60913,3259.6
Distribution Per Unit (“DPU”) (cents)1.5571.633(4.7)
Annualised DPU (cents)6.2286.487(4.0)

Weighted Average Debt Maturity

With the post refinancing in April 2016, the weighted average debt maturity was lengthen from 3 years to 3.6 years.

Soilbuild REIT 1Q2016 Refinancing


Soilbuild REIT has a portfolio occupancy rate of 94.8% as at 31 March 2016. The portfolio renewals achieved a positive rental uplift of 7.6%.

Weighted Average Lease Expiry

Weighted average lease expiry (by gross rental income) stands at 4.7 years.

Soilbuild REIT WALE

Mr Roy Teo, CEO of the Manager, said: “For 1Q FY2016, the fall in occupancy is partially cushioned by a 6.6% positive rental reversion, despite several quarters of declining rental in various sub-industrial sectors.”

I have previously added more of Soilbuild REIT to my portfolio. (Read more at Summary of January 2016 Transactions)

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