Soilbuild REIT

Soilbuild REIT: Reported its maiden 3Q13 DPU of 0.76¢ and distributable income of $6.1m, both 3% above its IPO forecast. Gross revenue of $8.2m and NPI of $6.9m came in higher than expected by 0.8% and 2.0% respectively, on the back of a 7.9% rental uplift from three lease renewals in Eightrium and Tuas Connection. Overall portfolio occupancy rate improved 0.1ppts to 99.8% mainly from an expansion by an existing tenant at Eightrium, while weighted average lease to expiry is at 3.9 years on NLA. Soilbuild REIT's gearing of 29.4% gives it debt headroom of ~$53m on a 35% target gearing ratio, while the average cost of debt is at 3.11% and debt maturity of 2.9 years. NAV per unit remained stable at $0.80, compared to its last closing price of $0.755. Mgmt expects market to remain subdued for the remainder of 2013, on the back of the cooling policy measures and fragile economic outlook.