Soilbuild REIT’s Q2 profits inch up 3.7% to $17.3m

Thanks to a reduction in property tax expense.

Slashed property tax costs came to Soilbuild Business Space REIT’s (Soilbuild REIT) rescue in Q2, lifting its net profit marginally despite flat revenue.

According to a report by OCBC, net property income inched up 3.7% YoY to $17.3m on back of a reduction in property tax expense for West Park BizCentral, while gross revenue was flat at $19.6m. Meanwhile, DPU dipped 3.1% YoY to about 1.57 S cents due to an enlarged unit base.

OCBC further reveals that Soilbuild REIT saw negative rental reversions of 5.7% for its renewal leases, though the area renewed only comprise about 1.2% of its over portfolio NLA.

Occupancy stood at 92%, as at 30 June. This reflects a QoQ slip of 2.8 percentage point, on back of the challenging leasing environment.

For H1, Soilbuild REIT’s gross revenue inched up 3.9% to $39.7m, while DPU came in 3.9% lower to about 3.12 S cents.