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….