SINGAPORE (Jan 21): The manager of Soilbuild Business Space REIT (Soilbuild REIT) has declared distribution per unit (DPU) of 1.451 cents for the 4Q18 ended December, some 4.9% higher than DPU of 1.383 cents a year ago.

This brings total DPU for FY18 to 5.284 cents, some 7.5% lower than total DPU of 5.712 cents a year ago.

Gross revenue grew 24.3% to $25.8 million in 4Q18, from $20.7 million a year ago.

This was mainly due to the liquidation proceeds received from Technics Offshore Engineering, conversion of Solaris into a multi-tenanted property, and the maiden contribution from two Australia properties.

Property operating expenses were $5.3 million in 4Q18, 77.3% higher than $3.0 million a year ago. This was mainly due to higher property expenses incurred for Solaris, West Park and 14 Mort Street.

4Q18 net property income (NPI) rose 15.3% to $20.5 million, from $17.8 million a year ago.

Soilbuild REIT recorded negative rental reversion of 12.6% in 4Q18. In FY19, 12.0% or approximately 481,800 sqft of the portfolio’s net lettable area is due for renewal.

Weighted average lease expiry by net lettable area and gross rental income stood at 3.7 and 3.9 years.

As at end December, cash and cash equivalents stood at $13.7 million.

“Our focus in FY19 will be to enhance our operational performance and prudently evaluate further growth opportunities in Australia to achieve sustainable returns for our unitholders,” says Roy Teo, CEO of the manager.

Units of Soilbuild REIT closed flat at 60.5 cents on Monday.