Soilbuild REIT DPU dips 1.8% to 1.37 cents in Q3

Revenue from its 72 Loyang Wang property fell by $1.7m as it struggles to find tenants.

Soilbuild Business Space REIT's (Soilbuild REIT) distribution per unit (DPU) dipped by 1.8% YoY to 1.37 cents in Q3.

According to DBS Equity Research, the company's net property income (NPI) rose 3% YoY to %17.8m.

Gross revenue also rose 4.1% YoY to $20.5m, thanks to a higher contribution of $1.9m from Bukit Batok Connection.

However, revenue from its property in 72 Loyang Wang fell by $1.7m.

Here's more from DBS Equity Research:

Portfolio occupancy continued to improve from a low of 89.6% at end-2016 to 92.6% as at September 2017.

Occupancy at Eightrium is at 100%. As for 72 Loyang Way, since the default of its master tenant, Technics, and the full utilisation of its security deposit in May 2017, the manager has sought regulatory waiver to lift the restriction placed on the sector that any future tenant is operating in; this represents 30% of the space which is filled to 27%.

The challenge remains for sourcing an anchor tenant as 70% of the property is still under regulations to be leased out to one anchor tenant from the marine & offshore industry.