Singapore-listed industrial REIT Cambridge Industrial Trust (CIT) (SGX:J91U) has reported a distribution per unit (DPU) of 1.25 Singapore cents for its 3Q 2014, a 0.1% contraction as compared to the 1.251 Singapore cents paid out for 3Q 2013.

This is despite announcing a 5% year-on-year growth in revenue which was recorded at SGD25 million for the quarter. Net property income (NPI) for 3Q 2014 also increased by 1.8% to SGD19.7 million due to contributions from completed asset enhancement initiatives.

The REIT has attributed the dip in DPU to increasing costs in connection to the conversion of single-tenanted properties to multi-tenanted ones and an increase in the number of units in circulation.

"We are moving a number of our core Singapore properties to multi-tenancy", said Philip Levinson, CEO for the REIT's manager in oblique reference to regulatory changes governing industrial properties.

But he emphasised the the REIT is optimistic on its occupancy figures despite the changes. "The strong underlying occupancies and anchor tenants already in place in these properties will provide long-term earnings support", he said adding that the REIT will seek yield-accretive acquisition opportunities in Australia, Japan and Malaysia while keeping Singapore as its core market.

Portfolio occupancy for the quarter stands at 96% with a weighted average lease to expiry (WALE) of 3.7 years. CIT's gearing is currently at 33.9% and within the REIT's long term gearing target of 35%.

Units if CIT ended about 2% higher from the previous trading day to end at SGD0.72 in line with gains made by REITs on the Singapore Exchange.