AIMS AMP Capital Industrial REIT has reported a DPU of 2.75 Singapore cents for its 2Q 2017, a decline of 1.8% from the 2.8 cents achieved in the corresponding period of 2016.

Gross revenue for the period declined by 4.3% year-on-year to SGD29.9 million (USD21.5 million), while net property income fell by 6.9% to SGD19.2 million.

Correspondingly, distributable income for the period declined by 1.4% to SGD17.5 million from a year ago.

Amid challenging market conditions, its priority is to retain tenants as part of an active lease management strategy, said the Singapore-listed REIT.

“We also continue to manage risk through a prudent capital management and diversification across our portfolio of 26 properties”, said Koh Wee Lih, CEO of the REIT’s manager, in his statement on the results.

The REIT pointed to several developments, such as its new third-party built-to-suit property that will be leased for 10 years, and ongoing enhancement works at 30 & 32 Tuas West Road, as measures that will help to bolster rental income in the quarters ahead.

However the REIT warned that there is still an oversupply of industrial spaces in Singapore.

“Given the weak economic climate and industrial oversupply situation in Singapore, the industrial leasing market will continue to remain challenging in the short term as rents and occupancies continue to be under pressure”, it said.

Units of AIMS AMP Capital Industrial REIT are currently listed on the Singapore Exchange at SGD1.38, down 0.7% from its previous close.