Thanks to acquisitions in 2014 and 2015.
Soilbuild Business Space REIT (Soilbuild REIT) enjoyed a steady end to its 2015 financial year, as it posted a full year net property income (NPI) of about $67.78m. This is a 18.2% YoY leap from FY14’s $57.36m, while 4Q15 NPI showed a 17.1% YoY hike to $17.5m.
According to a report by OCBC, the growth was due to 2014 and 2015 acquisitions, though offset by raised finance expenses and managers fees.
Meanwhile, Soilbuild REIT seven lease renewals in Q4, amounting to 197,724 sqft of space. These were inked at a negative 6.6% rental reversion, reflecting a turbulent leasing environment amid a constrained macroeconomic landscape and supply concerns. Nevertheless, FY15 had a total of 568,671 sqft of renewed space at a positive rental reversion of 2.5%.
Occupancy dipped to 96.8% in Q4 from Q3’s 98.7% on back of higher vacancies at West Park BizCentral and Tuas Connection.
Soilbuild REIT initially had 14.9% of its leases (by NLA) expiring in 2016, but company management forward renewed 2.3% of this, leaving 12.6% for the rest of the year.
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