The manager of Soilbuild Business Space REIT (Soilbuild REIT) has reported a distribution per unit (DPU) of 1.10 cents for 3QFY2020 ended Sept 30.

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This brings the REIT’s DPU for the nine months to 2.728 cents.

Gross revenue for the quarter rose 8.0% y-o-y to $1.7 million due to the $3.1 million higher revenue from the newly acquired 25 Grenfell Street. The gains were partially offset by net rent waivers of $0.9 million and $0.5 million lower contribution from 2 Pioneer Sector 1, which is under redevelopment.

Property operating expenses fell by 26.1% y-o-y to $3.1 million due to the reversal of $1.5 million of allowance for doubtful receivables, $0.4 million lower expenses for Solaris and $0.2 million lower expenses for Tuas Connection and 72 Loyang Way each.

Consequently, net property income (NPI) grew 16.5% y-o-y to $19.7 million due to a reversal of allowance for doubtful receivables and provision for rent waivers of S$1.5 million and lower property taxes.

The total amount available for distribution rose 20.8% y-o-y to $14.0 million for the quarter.

The amount includes tax-deferred distribution from the REIT’s Australian portfolio but excludes reimbursements from vendors in relation to outstanding rental incentives.

Portfolio occupancy rate rose 3.4 percentage points to 92.9% in 3QFY2020. Year-to-date, the manager has completed more than 581,000 sq ft of renewals and new leases.

“As cashflow visibility improves, the Manager is able to release provisions and resume capital distribution relating to Australia-sourced income. We are mindful that the economy and lives have yet to return to normalcy. The Manager is monitoring the situation closely and will respond quickly to changes with the aim of building a more resilient portfolio,” says Roy Teo, CEO of the manager.

As at Sept 30, cash and cash equivalents stood at $17.3 million.

Units in Soilbuild REIT closed 1.5 cents higher, or 3.1% up, at 50 cents on Oct 16.