Soilbuild Business Space(Dividend yield 7.9%) announced their third quarter results.
The Distributable Income dropped by 3.9% and overall DPU dropped by 13.9%. We have to be aware that there was a preferential offering, which is dilutive to existing shareholders and enlarged the share base.
This preferential offering was to fund the purchase of a short land lease Bukit Batok connection.
The Gross Revenue was down by 4.7% versus last year same time. However, we expected the impact to be greater.
Recall that Technics Oil and Gas defaulted on their rent, and Technics Oil and Gas contribute 8% to revenue. It is likely that the company is drawing down the rental deposit.
There are only 3% more properties in 2016 that is up for renewal. We are already seeing Soilbuild renewing 2.3% of the properties expiring in 2017.
From the above slide, those forward renewal in 2017 have a negative 6.6% rental revision. The new leases look low as well.
If you like materials such as these and would like to enhance your Wealth Management towards have a Wealth Machine that gives You Financial Security and Independence, Subscribe to my List Today Here >>
If you like this do check out the FREE Stock Portfolio Tracker and FREE Dividend Stock Tracker today
Want to read the best articles on Investment Moats? You can read them here >
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- New 6-Month Singapore T-Bill Yield in Late-April 2024 to Drop to 3.70% (for the Singaporean Savers) - April 18, 2024
- Golden Nuggets from JPMorgan Guide to Retirement 2024. - April 16, 2024
- Be Less Reliant on Banks and Build Stronger Capital Markets by Pushing for Better Shareholder Dividend and Buyback Yield - April 14, 2024
FFE
Thursday 13th of October 2016
Hi,
Just wanted to add that the contribution from Bukit Batok Connection hasn't fully kicked in yet. Once it's in, it's about 10% of revenue, thus shouldn't have an issue cancelling out the loss of revenue from Technics.
Regards, FFE
Kyith
Saturday 15th of October 2016
hi FFE, thanks for pointing out my mistake. If you see the opportunity, you might make out that they may be able to find a tenant for the premises at Technics. even though its challenging in this climate. My acquaintance have a problem selling a nearby factory.