Soilbuild REIT’s revenue up 8.3% to $17.7m

Its DPU grew by 5%.

Soilbuild REIT reported that its revenue rose 8.3% year-on-year to $17.7m, coupled with a 5% DPU growth to 1.585 cents.

Its portfolio occupancy stood at 100%, and the group achieved an average rental reversion of 9.8% in FY14.

According to OCBC, management will increase its focus on securing renewals on leases expiring in FY15, which make up ~18.2% of rental income.

“While there is an impending court case regarding a dispute over the amount of land rent payable to JTC Corporation for its Solaris property, Soilbuild REIT believes it has a strong case based on the advice of its legal counsels. We raise our FY15 and FY16 DPU forecasts by 3.6% and 3.9%, respectively, to take into account recent acquisitions. Rolling forward our valuations, we derive a higher fair value estimate of S$0.93 (previously S$0.88),” stated OCBC.