Here's why Soilbuild REIT can shrug off an industrial market slowdown

Small exposure to soon-to-be pressured sector.

"The industrial market may potentially face downward pressures in rental and occupancy rates with the influx of industrial space supply," predicted OCBC Investment Research, but noting that Soilbuild REIT will not be as badly hit.

"Nevertheless, given that only 17.3% of Soilbuild EIT’s portfolio NLA is due for renewal in 2014, we believe its financial performance is likely to stay firm," OCBC said.

The assessment came as Soilbuild REIT's portfolio occupancy inched up to 99.8% from 99.7% (at listing date) due to expansion by an exiting tenant at Eightrium, which OCBC said reflected a "keen leasing demand" at Soilbuild REIT’s portfolio assets.

The research firm added that the industrial property rental index and occupancy rates also registered sequential improvements in most submarkets, driving the demand in 3Q after seeing pockets of weakness in 2Q.