Viva Industrial Trust’s (VIT) 1Q17 results were within expectations. 1Q17 revenue jumped 24.9% YoY to S$27.3m or 25.1% of our full-year forecast, boosted by a S$1.6m contribution from the Chin Bee acquisition as well as additional contribution of S$2.5m from VBP.

1Q17 NPI increased 28.8% YoY to S$20.3m. 1Q17 DPU increased 13.2% YoY to 1.854 S cents, or 24.5% of our full-year forecast.

We note that new leases have been signed at Jackson Square from the ICT and technology sector such that current committed occupancy excluding Jackson International (JIPL) subsidiaries is 50%.

Total occupancy at Jackson Square as at end-Mar, which included McDermott, is 91%. VIT’s portfolio occupancy as a whole has improved from 86.9% in 1Q16 to 91.1% in 1Q17.

We maintain BUY on VIT, but place our fair value of S$0.795 under review pending further details.

Source: OCBC Research - 28 Apr 2017