Mapletree Logistics Trust announced on 25 July that it has achieved a distribution per unit (DPU) of 1.85 Singapore cents for its 1Q FY16/17, unchanged from the corresponding period in the previous financial year.

Gross revenue and net property income for the period came in at SGD89.6 million and SGD75.2 million, representing a year-on-year increase of 5% and 6% respectively over the same period last year.

The Singapore-listed industrial REIT has attributed the results mainly to contributions from acquisitions, organic growth from its Hong Kong and Japan properties, and effects of stronger Japanese Yen.

However the overall growth was partly offset by lower contribution from its Singapore portfolio, said the REIT, pointing to the impact of single-user assets conversions to multi-tenanted buildings, loss of contribution from 76 Pioneer Road, which is undergoing redevelopment, and divestments from two other properties.

Mapletree Logistics Trust’s portfolio occupancy was 95.4% as at 30 June 2016 with a weighted average lease expiry (WALE) by net lettable area of 4.4 years.

The REIT’s aggregate leverage declined to 35.7% from 39.6% in the previous quarter but this is expected to increase to approximately 37.4% upon the completion of two acquisitions announced earlier in the year.

The REIT has warned that global economic conditions remain fragile. “The leasing environment for Mapletree Logistics Trust’s portfolio is challenging and pressure on occupancy and rental rates will likely remain given the uncertain economic outlook”, it said.

Units of Mapletree Logistics Trust finished the trading day about 1.4% higher from its previous close on the Singapore Exchange to end at SGD1.06.