Singapore-listed industrial REIT AIMS AMP Capital Industrial Trust (SGX:RW0U) has announced a distribution per unit (DPU) of 2.77 Singapore cents for its 2Q2015 spanning 1 July 2014 to 30 September 2014.

The figure represents an increase of 0.7% from the 2.75 Singapore cents paid out for the corresponding period in FY2014. Gross revenue for the quarter increased by 5% to SGD28.2 million while net property income (NPI) grew by 8.2% to SGD39.2 million.

The REIT has attributed the quarter’s results mainly to income contribution from new properties. “This 2Q result reflected the first partial contributions from our newly completed developments at 103 Defu Lane 10 and Phase 2 Extension of 20 Gul Way”, said Koh Wee Lih, CEO for the REIT’s manager.

“Stable contribution from our investment in Optus Centre, Sydney was also reflected in the share of joint venture’s results. In addition to new development and investment income, we achieved rental increases for renewals averaging 8.6%”, said Koh.

For the quarter, the REIT maintains an average portfolio occupancy of 96.6% while its weighted average lease to expiry (WALE) stands at 3.57 years. However the REIT admits that the quarters ahead remain challenging for industrial properties.

“While there remains some pressure in the industrial property sector with occupancy moderating, we are cautiously optimistic for the rest of the year. The REIT’s portfolio is also well diversified across sectors and property types, with logistics & warehousing, telecommunications, and pharmaceutical / healthcare / cosmetics as the top three tenant types, the REIT said in an official release on the quarter’s results.

Units of AIMS AMP Capital Industrial REIT are currently listed on the Singapore Exchange at SGD1.47.