72 Loyang Way is Soilbuild REIT’s double-edge sword

On 12 Apr 2017, SoilbuildBizReit released it’s financial results ending 31 Mar 2017.

While portfolio occupancy is at 91.8% as at 31 March 2017, occupancy rate at 72 Loyang Way stands sticks out like a sore thumb at 9.9%…

To date, Soilbuild REIT has maintained its net property income contribution from 72 Loyang Way by utilising the security deposit received. The unutilised security deposit amounted to S$1.3 million as at 31 March 2017.

If the REIT manage to lease out 72 Loyang Way before the security deposit runs out, they stand to pocket the extra. But if the security deposit runs out before finding tenants for 72 Loyang Way, then there will be a negative impact on the DPU beyond that.

SoilbuildBizReit’s yield is 8.79% based on closing price of 0.685 on 12 Apr 2017. Making it the 3rd highest yield amongst the industrial REITs.


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Reference: Presentation Slides

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