Singapore’s Soilbuild Business Space REIT’s (SGX:SV3U) distribution per unit for the period spanning 1 July 2015 to 30 September 2015 has been recorded at 1.625 Singapore cents, an increase of 5.1% compared to the 1.546 Singapore cents paid in the corresponding period of 2014.

Correspondingly gross revenue and net property income for the quarter came in at 22.4% and 25.3% higher than the previous year. The industrial REIT has attributed its results partly to contribution from the Technics acquisition that was completed in May 2015.

“Despite the challenging operating environment, Soilbuild REIT achieved over 250,000 square feet of renewals and new leases in 3Q FY2015”, said Roy Teo, acting CEO of the REIT’s manager. “In addition, we have successfully refinanced our club loan, having no major refinancing requirements until FY2018. This has increased Soilbuild REIT’s unencumbered assets to over SGD0.5 billion, reflecting lenders’ confidence in Soilbuild REIT”, he added.

The REIT’s aggregate leverage is currently at 36.1%.Portfolio occupancy rate as at 30 September 2015 is at 98.7% while weighted average lease expiry (WALE) by gross rental income stands at 4.8 years.

However the REIT has warned that the operating environment is expected to be challenging in the quarters ahead. “In addition to the ongoing downturn of the oil and gas industry, the challenging position of the manufacturing sector places further downward pressure on industrial rents and occupancy”, said the REIT.

Units of Soilbuild Business Space REIT are currently listed on the Singapore Exchange at SGD0.82.