Singapore-listed office REIT CapitaLand Commercial Trust achieved a DPU 2.30 Singapore cents for its 3Q 2016 financial period, an increase of 7.5% year-on-year over the 2.14 cents recorded for 3Q 2015.

Correspondingly, gross revenue for the period increased by 8.9% to SGD74.4 million (USD53.7 million), while net property income (NPI) grew by 8.3% to SGD57.0 million.

The REIT has attributed the results mainly to full income contribution from office tower CapitaGreen, and substantially higher contribution from its stake in Raffles City Singapore.

CapitaLand Commercial Trust has a 60% stake in each of these properties.

Monthly average office rent of the REIT’s portfolio increased by 2.7% quarter-on-quarter, marking 17 quarters of consecutive growth.

“Despite market headwinds, [the REIT’s]portfolio has remained resilient with 97.4% occupancy rate which is still higher than market occupancy rate of 95.9% in 3Q 2016”, said Lynette Leong, CEO of CapitaLand Commercial Trust’s manager.

The REIT’s weighted average lease expiry (WALE) by net lettable area as at end-September 2016 was at 6.8 years

Leong also added that the REIT is currently seeking government approvals to redevelop the Golden Shoe Car Park into a one million square foot commercial space, replicating its success in converting the former Market Street Car Park into CapitaGreen.

“We will update the market when there is significant progress”, said Leong, highlighting that the REIT’s Raffles City property will also be undergoing a SGD54 million asset enhancement initiative from 3Q 2016 to 1Q 2018.

Units of CapitaLand Commercial Trust last changed hands on the Singapore Exchange at SGD1.55.