Singapore-listed industrial REIT Ascendas (SGX:A17U) posted a DPU of 14.24 Singapore cents for its financial year of 2013/2014. The figure represents a year-on-year growth of 3.6% when compared to the 13.74 cents posted for 2012/2013.

The DPU grew on the back of an increase in the REIT's amount available for distribution which saw an 11.9% year-on-year jump to SGD342.0 million.

Managers of the REIT has attributed its performance for the year to positive rental reversions averaging 14.8% for the financial year. According to an official statement released by the REIT, most leases signed previously were below market rates. This has since been adjusted to reflect prevailing market conditions resulting in a 6.6% rise in gross revenue of SGD613.6 million.

For the next financial year, Ascendas REIT has indicated that it expects the supply of industrial space in Singapore to increase but foresees demand for business and industrial space is likely to remain healthy on the back of a tentative global recovery.

However it warns that Singapore government regulations on foreign manpower may continue to have impact on cost of operations. There are also lingering concerns on the REIT's 10.4% portfolio vacancy despite a rebound in manufacturing activities in Singapore.

The REIT remains positive on its prospects in China given the country's growing domestic consumption and economic reforms and has indicated that it will continue to look for growth opportunities in target product segments and cities.