4Q18 revenue increased 114.9% YoY to S$58.4m while NPI increased 112.1% YoY to S$42.3m. The increase in revenue and NPI were mainly due to 1) full quarter contributions from 8 Tuas South Lane and 7000 Ang Mo Kio Avenue 5 (“7000 AMK”) which were acquired in Dec 2017, 2) the inclusion of Viva Industrial Trust's portfolio from 16 Oct 2018, and 3) additional contributions from 15 Greenwich Drive which was acquired 25 Oct 2018.

Borrowing costs increased 106.7% YoY to S$10.9m. 4Q18 DI increased 140.2% YoY to S$29.3m while DPU increased 8.2% YoY to 1.005 S cents. All in all, FY18 DPU came up to 3.857 S cents or 101% of our full-year forecast.

Portfolio occupancy is at 93.0% as at end-FY18 and rental reversions have improved on a YoY basis (-2.9% for FY18 vs. -15.8% for FY17).

We maintain BUY but place our fair value of S$0.59 under review pending further details from this morning’s briefing.

Source: OCBC Research - 18 Jan 2019