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Are Soilbuild, Keppel and ESR REITs still good yield plays?

Benjamin Cher
Benjamin Cher10/30/2017 08:00 AM GMT+08  • 5 min read
Are Soilbuild, Keppel and ESR REITs still good yield plays?
(Oct 30): Several real estate investment trusts have begun trading ex-dividend over the past two weeks. Among them are Soilbuild Business Space REIT, Keppel REIT and ESR-REIT. It may be a good time for investors to examine their positions in these REITs,
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(Oct 30): Several real estate investment trusts have begun trading ex-dividend over the past two weeks. Among them are Soilbuild Business Space REIT, Keppel REIT and ESR-REIT. It may be a good time for investors to examine their positions in these REITs, given that their incomes have come under some pressure.

Soilbuild REIT traded ex-dividend on Oct 20. Its cash distribution of 1.374 cents a unit will be paid on Nov 20. Analysts have tempered their expectations for the REIT, as it is dealing with several tenants that are struggling to pay their rents. Master lease tenant NK Ingredients is currently in default. And while Soilbuild REIT has called upon an insurance guarantee for $5.1 million and received $3.4 million of that sum on Oct 10, analysts are sceptical that NK Ingredients will be able to pay the remaining arrears of $3.4 million. Another tenant, KTL Offshore, is still in arrears of about seven months of rent, or $2.7 million.

On Oct 13, the REIT reported its results for 3QFY2017 ended September. Revenue increased 4.1% to $20.5 million but distributable income declined 0.8% to $14.4 million.

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