For 2 consecutive quarters, the distribution per unit has declined for Soilbuild Business Space REIT. Based on the closing price of $0.72 on 30th June 2017, the annualised distribution yield is 8.2%. I have previously wrote about the investment risks of Soilbuild Business Space REIT here, thus I shall be repeating it again in this post.
I am writing this post just to re-validate my decision to sell Soilbuild Business Space REIT when opportunity arises. The REIT currently makes up 5% of my stock portfolio.
The following are my observations based on its current financials
Declining Distribution Per Unit quarter on quarter (q-o-q)
Distribution Per Unit has been declining. It has proven that we should not solely purchase a REIT based on its high dividend yield.
|2nd Quarter||1st Quarter|
|Distribution Per Unit (“DPU”) (cents) FY2016||1.565||1.557|
|Distribution Per Unit (“DPU”) (cents) FY2017||1….|