Singapore-listed retail real estate investment trust, SPH REIT (SGX:SK6U), announced on 13 April that it has posted a distribution per unit (DPU) of 1.40 Singapore cents for its 2Q 2015, an increase of 0.7% against the corresponding period in 2014.

Gross revenue for the period improved by 2.8% to SGD52.5 million, on the back of higher rental income from the properties in its portfolio, namely Paragon and the Clementi Mall. Correspondingly net property income (NPI) of SGD40.3 milion for the quarter was 3.7% higher than last year. Income available for distribution was SGD36.3 million, an increase of 4.0% year-on-year.

SPH REIT has attributed its performance to rental growth at its property on Orchard Road. “Paragon continues to achieve consistently robust performance with rental uplift of 11.6% for new or renewed leases in 1H 2015 amid challenging retail environment”, said the REIT in a statement announcing the results.

However the Clementi Mall recorded a negative rental reversion of 8.8% on 2.0% of total net lettable area, due to what the REIT refers to as “fine-tuning of tenancies”. “Barring any unforeseen circumstances, the two retail properties are expected to remain resilient and turn in a steady performance”, said Susan Leng, CEO of SPH REIT’s manager.

SPH REIT maintains 100% occupancy for its portfolio for the quarter. The REIT’s gearing stands at 26% with an average cost of debt of 2.50% as at 28 February 2015.

Distribution for 2Q 2015 will be paid to unitholders on 15 May 2015. Units of SPH REIT last changed hands on the Singapore Exchange at SGD1.07.