Singapore-focused business park and industrial property stapled security Viva Industrial Trust (VIT) (SGX:T8B) has announced a distribution per stapled security (DPU/DPS) of 1.723 Singapore cents for its 2Q 2014.
The DPU/DPS announced is 0.3% higher than the forecast 1.717 Singapore cents as set out in its IPO prospectus published in October 2013.
VIT also posted a 10.2% increase in net property income (NPI) to SGD10.2 million for the reporting period compared to the forecast of SGD9.3 million.
Subsequently the trust’s revenue, which came in at SGD15.2 million, was 6.7% above forecast revenue of SGD14.3 million. Distributable income for 2Q14 was SGD10.3 million, or 0.4% higher than the forecast of SGD10.2 million.
Managers for VIT has attributed the higher-than-forecast distributable income primarily to lower income tax expense in respect of the rental top-up under the UE BizHub EAST rental arrangement.
The trust also indicated that it saw higher rental income from new leases at UE BizHub EAST. However, rental income contribution from Technopark@Chai Chee was SGD0.2 million below forecast, as efforts to sign on new tenants were moderated in view of the upcoming asset enhancement initiative.
In a statement issued on 31 July, CEO for the manager of VIT Wilson Ang stated that he expects good demand for business park space in Singapore.
“The better-than-forecast performance that we have recorded for the second quarter of 2014 reflects healthy demand for business park space. There is room for us to improve the occupancy rate at UE BizHub EAST and Technopark@Chai Chee, and we will continue to work diligently at that”, he said.
Occupancy at both properties stand at 63% and 85% respectively while weighted average lease to expiry (WALE) stands at 1.7 years and 5 years respectively. VIT’s other property, Mauser Singapore, is fully leased with a WALE of 4.9 years.
Units of VIT are currently trading at SGD0.815 on the Singapore Exchange.