Soilbuild Business Reit's Response to SIAS' Query on FY2016 Annual Report

If you are currently a Soilbuild Business Reit's shareholder or interested in investing in this company, then you should take a look at their recent response to SIAS' query on their FY2016 Annual Report. The link for the attachment is here.

The current challenge for this Reit is the leasing of 72 Loyang Way. The previous tenant Technics Oil And Gas had defaulted on rent payment.Technic's security deposit has been used to cover the rent in the meantime and only left about 1 month of deposit left to draw down. The asset value of this property has been revised down by 33%. 😞

Taken from Annual Report 2016 

Net Asset Value drops from $0.80 to $0.72

The good news for existing shareholders is JTC has temporarily lifted the subletting requirements on 30% of the subject site’s gross floor area (“GFA”) till end 2020. This provides the REIT an option to sublet 30% of the GFA to non-anchor tenants. Currently, part of the premises is leased to 2 tenants, occupying 9.9% of the GFA. The info can be found in the attachment link I provided earlier.

Currently Soilbuild Business Reit makes up less than 4% of my cash stock portfolio. My average price is $0.72. I also use CPF OA to invest in Soilbuild Business Reit. However, I am separating my CPF and cash investments. The chart below only shows my stock portfolio using cash.

Next quarter's dividend yield should drop further. My forecast of 9.52% based on current price should be unachievable. Hopefully I could still receive at least 8% of dividend yield based on my purchase price of $0.72. As the Reit currently occupies just a small percentage of my portfolio, I am not overly concerned. In the meantime, I would just stay calm and keep collecting dividends.