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The net property income (NPI) of Soilbuild Business Space REIT (Soilbuild REIT) increased 11.7 percent to $19.21 million in Q1 2017, compared to $17.19 million during the corresponding period last year, said an SGX filing on Wednesday (12 April).
Its gross revenue also rose 9.2 percent year-on-year to $21.99 million from $20.14 million previously.
Soilbuild REIT’s better revenue and NPI were attributed to higher contributions from Bukit Batok Connection, Solaris, Tellus Marine and Tuas Connection, but it was partially offset by lower revenue from West Park. The NPI was further improved by a reduction in property tax.
At the same time, its distributable income climbed 6.6 percent to $15.57 million from $14.61 million in Q1 2016. However, distribution per unit (DPU) fell 4.4 percent to 1.49 cents versus 1.56 cents a year ago, as there were about 1.04 million issued units in Q1 2017 compared to 0.94 million units during the previous period.
As of 31 March 2017, the REIT’s portfolio occupancy rate stood at 91.8 percent, including the 9.9 percent occupancy level at 72 Loyang Way. Weighted average lease expiry by net lettable area and gross rental income also reached 3.4 and 3.3 years, respectively.
“The team has secured close to 160,000 sq ft of new leases and completed 100,000 sq ft of renewals and forward renewals in this quarter, which improved the portfolio’s occupancy rate by 2.2 percent compared to previous quarter,” said Roy Teo, CEO of SB REIT Management, the trust’s manager.
“With 12.6 percent of the portfolio net leasable area expiring in the rest of 2017, the key challenge remains to retain existing tenants and improve occupancy in the multi-tenanted buildings and 72 Loyang Way,” he added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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