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2 REITS That Have Delivered Positive Results Recently

We are in the midst of the earnings season.

As is common with every earnings season, there will be some real estate investment trusts (REITs) posting growth, some posting mixed numbers while others experience declines. So, which are the REITs that have reported positive results recently? Let’s look at two of them.

Viva Industrial Trust (SGX: T8B), or VIT, is one of those REITs that has delivered commendable result recently.

As a quick introduction, VIT is a REIT that invests in a portfolio of real estate that is predominantly for business parks and other industrial purposes. Currently, VIT’s portfolio comprises of nine properties located in Singapore.

Gross revenue grew 10.8% to S$28.34 million whilst net property income (NPI) improved grew 14.3% to S$20.66 million as compared to the same period last year. Similarly, distribution per stapled security came in at 1.857 cents, 5.5% higher than a year ago.

The strong results were driven mainly by positive rental reversions achieved at UE BizHub East and Viva Business Park, as well as by contributions from 6 Chin Bee Avenue.

Overall occupancy rate was 90.6%, up from 89.8% one year back.

Wilson Ang, Chief Executive Officer of VIT, said:

“In 2017, we have delivered strong returns to our unitholders with investors recognizing good value in VIT. Challenges remain in the industrial REITs market, with active management, deep relationships and portfolio scale being the key differentiators amongst industrial S-REITs’ performance. We strive to continue pressing ahead to outperform expectations, with the view to further crystallising value for our unitholders.”

The next REIT that has performed well is Frasers Logistics and Industrial Trust (SGX: BUOU), or FLT.

FLT is the first Singapore-listed REIT with an initial pure-play Australian industrial portfolio. FLT owns 61 Australian industrial real estate assets concentrated within major industrial markets in Australia, which include Melbourne, Sydney and Brisbane.

Gross revenue increased 6.9% to S$42.4 million while NPI improved 8.9% to S$33.4 million as compared to one year ago. Distribution per unit came in at 1.8 cents, 3.4% higher than the same period last year.

The stronger performance was driven mainly by four new acquisitions and completion of new facilities. Portfolio occupancy remained at 99.4%, as at 31 December 2017, with a weighted average lease expiry of 6.79 years.

Robert Wallace, Chief Executive Officer of the REIT, summarised FLT’s performance as follows:

“FLT started the year on a strong footing, delivering year-on-year DPU growth to our unitholders. In line with the REIT Manager’s focus on active portfolio management, we executed three forward lease extensions in 1QFY18, further extending FLT’s lease expiry profile.

The continued strength of our property portfolio, together with the pipeline of potential Australian and European industrial and logistics properties from our Sponsor, Frasers Centrepoint Limited, positions FLT for both organic and inorganic growth opportunities.”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.