Viva Industrial Trust’s (VIT) 2Q results were with expectations. Gross revenue increased 3.9% YoY to S$28.7m.

Including 50% of the distributable income attributable to the net income tax credit, the distribution declared was 3.1% higher YoY at S$18.6m. DPU increased 2.2% to 1.902 S cents or 28.0% of our full-year forecast which is within our expectations. Over 44.6% of the leases due for renewal this year have been renewed in 1H18 with a positive rental reversion of 2.3%.

Recall that VIT dispatched its scheme document on 7 Aug and VIT’s EGM and Scheme Meeting will be held on 31 Aug 2018 at the Stephen Riady Auditorium at NTUC Centre.

Given what we consider favourable terms, we encourage VIT unitholders to accept the offer.

Source: OCBC Research - 13 Aug 2018