Soilbuild Business Space REIT (SGX: SV3U)'s DPU Jumped 19.8% In Q3



Soilbuild Business Space REIT (SGX: SV3U)'s 3Q20 DPU was up by 19.8% to 1.15 cents. It is trading at 7.3% dividend yield based on its last traded of $0.50 on 16th Oct.


Key Highlights:


  • Distribution per unit (DPU) and Dividend Yield (7.3%)

  • Price to book ratio (0.85)

  • Gearing (36.8%)

  • Portfolio Occupancy (92.9%)

  • Interest coverage ratio (4.4x)

  • Growth catalyst


Background of Soilbuild Business Space REIT


Soilbuild Business Space REIT manages 13 business space properties in Singapore and Australia. Four of those properties are business parks and the remaining 9 are industrial assets.


The sponsor of Soilbuild REIT is Lim Chap Huat and his immediate family members, who are holding a total of 29.6% of the REIT. The former is also the co-founder of Soilbuild Group and a controlling shareholder of Soilbuild Construction Group Ltd (SGX: S7P), which is a construction company.


1. Distribution per unit and dividend yield


Net property income jumped 16.5% to S$19.7m. This was mainly contributed by the new property, 25 Grenfell Street, reversal of rental waivers and and lower property taxes.


Based on its latest price, the REIT is currently trading at about 7.3% dividend yield. Historically, the REIT's DPU has been in the down trend in the past 6 years.


2. Price to book ratio