Soilbuild Reit reports higher than forecast 4Q distribution per unit

Soilbuild Business Space Reit said on Thursday it would post a distribution per unit of 1.51 cents for the quarter ended Dec 31 last year, 3.4 per cent higher than it had forecast during its initial public offering in August.

From its listing date of Aug 16 last year to Dec 31 last year, Soilbuild Reit's actual distribution per unit was 2.27 cents, exceeding forecasts by 3.2 per cent.

Distributable income for the fourth quarter of last year was also 3.5 per cent higher than predicted, at $12.2 million.

Revenue and net property income for the Reit beat forecasts by 0.9 per cent and 2.1 per cent respectively, at $16.3 million and $13.7 million for the quarter.

The increase in revenue and net property income was due to higher carpark income and take-up rate at its Eightrium property at Changi Business Park.

Turnover was also boosted by higher rental at Tuas Connection, as well as at West Park BizCentral.

The Reit's manager said its portfolio occupancy increased to 99.9 per cent at the end of December.

Mr Shane Hagan, chief executive of the Reit's manager said the better-than-forecast performance "reflects continued focus from our team on the key performance areas such as asset management and capital management in a benign operating environment".

The Reit's manager expects to be able to do well this year as Singapore's official growth forecast is expected to be between 2 per cent and 4 per cent, underpinned by manufacturing and export growth.

It added that it will continue to focus on early renewal negotiations for lease expiries, minimise operating expenses and maintain a high proportion of fixed interest costs.