Soilbuild Business Space REIT (Soilbuild REIT) turned in a strong set of 4Q13 results this morning. NPI came in at S$13.7m, 2.1% above its prospectus forecast due to higher carpark income and higher income from Eightrium and Tuas Connection. The growth was further boosted by lower finance expenses, thereby pushing the distributable income 3.5% above its prospectus forecast at S$12.2m. As such, DPU for the quarter was 1.51 S cents, representing a 3.4% increase over its prospectus forecast. This brings the DPU from the period from listing date (16 Aug 2013) to 31 Dec 2013 to 2.27 S cents, slightly above our DPU projection of 2.19 S cents (prospectus forecast: 2.199 S cents). We are keeping our BUY rating on Soilbuild REIT but put our fair value of S$0.82 under review as we incorporate the results into our projections.

Source: OCBC Research - 23 Jan 2014