Soilbuild REIT

Soilbuild REIT: Turned in a strong set of 4Q13 results this morning. NPI came in at $13.7m, 2.1% above its prospectus forecast due to higher carpark income and higher income from Eightrium and Tuas Connection. The growth was further boosted by lower finance expenses, thereby pushing the distributable income 3.5% above its prospectus forecast at $12.2m. As such, DPU for the quarter was 1.51 S cents, representing a 3.4% increase over its prospectus forecast. This brings the DPU from the period from listing date (16 Aug 2013) to 31 Dec 2013 to 2.27 S cents, slightly above our DPU projection of 2.19 cents (prospectus forecast: 2.199 S cents). OCBC keeps its BUY rating on Soilbuild REIT but put its fair value of $0.82 under review as they incorporate the results into its projections.