Friday, November 1, 2013

Soilbuild Business Space REIT: Poised to deliver (AM)

Soilbuild Business Space REIT:
LAST CLOSE: S$0.755
FAIR VALUE: S$0.84
Poised to deliver

Soilbuild REIT’s performance exceeding prospectus guidance. Soilbuild REIT recorded a DPU of 0.76c for the period from Listing Date (16 Aug 2013) to 30 Sep 2013. This represents an increase of 3% over the forecast DPU of 0.738c, and forms 36.2% of our DPU forecast of 2.1c for the period from listing to end-Dec 2013. The DPU of 0.76c is payable on 4 Dec 2013.


Achieving positive improvements at the operating level. Soilbuild REIT’s positive variance from its projected DPU in its prospectus is attributable to operational improvements across the board. Expansion by an existing tenant at Eightrium as well as 100% retention of leases expiring allowed Eightrium to improve its occupancy levels from 95.3% at IPO to 97.4% at 30 Sep 2013. As a result, portfolio occupancy is currently at 99.8%, with no remaining leases due for expiry in FY13.

Notably, leases that were renewed achieved positive rent reversions of 7.9% over preceding average rental rates, in line with our expectations, which further supported underlying distributable income.

75% of interest rate exposure hedged. Also, Soilbuild REIT managed to achieve an all-in interest cost of 3.11% as at 30 Sep 2013, and this compares favourably with its guidance of 3.28% in its Prospectus. Aggregate leverage stood at 29.4%, below the 29.9% forecast in the Prospectus.

Stability and growth at the heart of our investment thesis. We continue to like Soilbuild REIT for its best-in-class business space portfolio, yield sustainability and stronger-than-average exposure to the business park market. At current levels, we project Soilbuild REIT’s FY14 yield at 7.9%, which makes it a very compelling yield play among S-REITs. Maintain BUY at FV S$0.84.


Source/Extract/Excerpts/来源/转贴/摘录: AmFraser-Research,
Publish date:31/10/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock