Singapore-focused business park and industrial property trust Viva Industrial Trust (VIT) (SGX:T8B) posted a distribution per stapled security (DPS) of 1.722 Singapore cents for the first quarter ended 31 March 2014.

The distribution figure is 1.7% higher than the forecast of 1.711 cents made in VIT’s initial public offering (IPO) prospectus.

VIT’s net property income of SGD9.9 million was also 10.2% above forecast, taking into account lower-than-expected marketing expenses incurred for its property Technopark@Chai Chee, even as expenses incurred in relation to property taxes, and repair and maintenance were above forecast.

Higher rental income from new tenancies at the business park space at UE BizHub EAST helped to bolster gross revenue for the quarter to SGD15.0 million which is 7.9% above forecast.

VIT’s occupancy for the quarter came in at 76.5% with a weighted average lease to expiry (WALE) of 3.3 years (by area) and 3.9 years (by underlying gross rental income).

VIT expects its occupancy to improve in the quarters ahead as Singapore’s manufacturing sector grew 4.5% in the first quarter of 2014. VIT expects growth from export-driven industries to gain momentum from the gradual improvements in the US, Europe and Japan.

Based on the IPO price of SGD0.78, VIT’s distribution of 1.722 Singapore cents translates into an annualised distribution yield of 9.1%. Unitholders will receive their distribution payment on 13 June.

Units of VIT closed the day at SGD0.79 on the Singapore Exchange.