Singapore-listed industrial REIT AIMS AMP Capital Industrial Trust (SGX:O5RU) has announced a distribution per unit (DPU) of 2.83 Sinapore cents for its 3Q 2015, a 2.2% year-on-year increase from the 2.77 Singapore cents posted in 2014.

Gross revenue for the quarter saw a jump of 8.8% to SGD29.7 million while net property income increased by 9.7% to SGD20.4 million.

The REIT has attributed the quarter’s increase in revenue to income from recently upgraded properties. “This 3Q result reflected rental contribution from our completed developments at 103 Defu Lane 10 and Phase 2E of 20 Gul Way, as they became income producing from 1 August and 14 August 2014 respectively”, said Koh Wee Lih, CEO for the REIT’s manager.

“Maiden rental contribution from Phase Three of 20 Gul Way also resulted in the rise in net property income”, said Koh, adding that the REIT has achieved rental rate increases for renewals averaging 9.2 per cent.

Koh has indicated that more of such asset enhancement works are in progress, with 1 Kallang Way 2A undergoing a SGD2.2 million upgrade. “This project will increase lettable area at the eight-storey light industrial building by 13%, adding warehouse and ancillary space. The forecast annual rental income is expected to rise from SGD1.07 million to SGD1.39 million providing a rental yield of 9.5%”, said Koh.

The REIT’s aggregate leverage for the quarter was at 31.7 % with a weighted average debt maturity profile of 3.4 years and 73% of debt on fixed interest rate. The REIT has also reported an appraised portfolio value of SGD1.44 billion and a portfolio occupancy of 95.9% at the end of the quarter. Weighted average lease expiry for the portfolio stands at 3.4 years.

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