Sabana Shari’ah compliant REIT (SGX:M1GU) has reported gross revenue of SGD25.5 million for its 3Q 2015, 1.5% higher than that of the corresponding period in 2014.

The Singapore-listed industrial REIT’s year-on-year net property income (NPI) also saw an increase of 1.4% to SGD18.2 million from SGD18 million in 3Q 2014.

“However, on a quarter‐to‐quarter basis, NPI was 0.8% lower in 3Q 2015 compared to 2Q 2015, due to lower gross revenue from 9 Tai Seng Drive as its rental support was fully utilised”, said the REIT in a statement released 16 October.

Correspondingly DPU of 1.77 Singapore cents for the quarter was 1.7% lower than 1.80 Singapore cents achieved in 2Q 2015 and 2.2% short of the 1.81 Singapore cents recorded in 3Q 2014.

CEO and executive director of the REIT, Kevin Xayaraj, has described market conditions to be challenging. However, that did not stop us from lifting our overall portfolio occupancy”, he said. “

We are especially pleased that we were able to secure a new tenant for 2 Toh Tuck Link that resulted in higher occupancy of 98.0% in 3Q 2015, up from 78.0% in 2Q 2015”, added Xayaraj.

Weighted average lease expiry (WALE) for the REIT is currently at 2.0 years.

“The manager anticipates market conditions to remain challenging”, said the REIT in a presentation on the quarter’s results. “However, it will actively manage Sabana REIT’s lease expiry profile and continue to be aggressive in its marketing and leasing efforts to increase the trust’s portfolio occupancy”, it added.

Units of Sabana REIT last changed hands on the Singapore Exchange at SGD0.785.