Singapore-listed industrial REIT Ascendas REIT (SGX:A17U) has on 23 July announced a distribution per unit (DPU) of 3.64 Singapore cents for its 1Q FY14/15.

The DPU signifies an increase of 2.5% over the 3.55 Singapore cents reported from the corresponding period in the last financial year and came on the back of an 8.1% increase in gross revenue for the period.

Revenue for the quarter was reported at SGD163.2 million as compared to the SGD150.9 million in the previous year.

Managers for the REIT has attributed the increase in revenue to positive rental reversions averaging 11.8% for leases renewed in 1Q FY14/15. The REIT indicates that its passing rental rates still under current market levels, signalling ample room for rental growth.

The REIT’s same-store portfolio occupancy held steady at 93.8% while same-store multi-tenanted building occupancy improved to 90.6% from 89.9% in March 2014. However the REIT has indicated that leases for two single-leased buildings expired during the quarter, one of which remains vacant while the other is 61.% occupied.

The REIT has stopped short of revealing these properties but remains optimistic that the vacancies are not going to affect its bottom line.

“With a customer base of around 1,330 tenants in a portfolio of 103 properties in Singapore and 2 business park properties in China, Ascendas REIT is well-diversified in terms of rental income. No single property accounts for more than 4.4% of Ascendas REIT’s monthly gross revenue”, the REIT said in a statement released on 23 July.

Units of Ascendas REIT closed the trading day about 0.5% higher to end at SGD2.33 on the Singapore Exchange.