Soilbuild REIT's net property income up 2% to $6.9m

Thanks to lower property expenses.

According to OCBC Investment Research, Soilbuild Business Space REIT (Soilbuild REIT) reported a stronger-than-expected set of 3Q13 (period from listing date on 16 Aug to 30 Sep) results last evening. 

NPI came in at S$6.9m, 2.0% higher than its prospectus forecast of S$6.8m due to higher income contribution and lower property expenses from Eightrium and Tuas Connection.

Here's more:

Distributable income of S$6.1m and DPU of 0.76 S cents were also 3.1% and 3.0% above the respective prospectus forecasts due to higher net income and lower finance expenses.

We note that Soilbuild REIT has achieved 100% retention rate for its leases, and has fully addressed its lease expiries for the year by renewing three leases (2.2% of portfolio NLA) at rental rates 7.9% higher than the preceding average passing rents.

In addition, portfolio occupancy inched up to 99.8% from 99.7% as at listing date. We will be speaking to management later for more details on its outlook.