Viva Industrial Trust’s (VIT) results were within expectations. DPU dropped 0.6% to 6.958 S cents, or 95% of our full-year forecast, as a result of an enlarged share base arising from two private and a preferential offering in FY15 as well as a private placement in Nov 2016 to fund a property acquisition as well as the asset enhancement initiative at Viva Business Park.

FY16 gross revenue increased 28.6% to S$95.1m, or 102% of our forecast, while NPI increased 34.7% to S$68.5m or 102% of our forecast. In Jan 2017, VIT completed the acquisition of the logistics and warehouse development at 6 Chin Bee Avenue.

Looking ahead, we note that the level of white space at VBP has reached 94.9%. We keep our BUY rating on VIT but place our fair value estimate of S$0.78 under review pending further details.

Source: OCBC Research - 26 Jan 2017