Singapore-listed office and retail REIT Mapletree Commercial Trust has reported a DPU of 2.05 Singapore cents for its 2Q FY16/17, an increase of 1.5% from the 2.02 cents achieved in the corresponding period of the previous financial year.

Gross revenue for the quarter increased by 23.6% to SGD88 million (USD63 million), while net property income grew by 24.8% to SGD68.4 million.

Subsequently distributable income for the period increased by 25.4% to SGD53.7 million.

The REIT has attributed the results to contributions from Mapletree Business City Phase 1 that came online in August 2016, and improvements in the performance of its existing portfolio.

“VivoCity continued to deliver outstanding performance, recording 2.7% growth in sales in 2Q FY16/17 compared against 2Q FY15/16”, said the REIT in its statement on the results, adding that the property has recently concluded enhancement works.

The REIT’s aggregate portfolio occupancy as at 30 September 2016 was at 98.8%, up from 97.8% in the previous quarter while portfolio weighted average lease expiry (WALE) by gross rental revenue was at 2.8 years.

Aggregate leverage ratio was at 37.3% with weighted average all-in cost of debt at 2.66% per annum, down from the 2.73% per annum as at 30 June 2016.

The REIT has indicated that it remains optimistic on its prospects for the quarters ahead despite Singapore’s slowing economy.

“[Mapletree Commercial Trust’s] existing properties are expected to remain relatively resilient, supported by VivoCity’s healthy performance in a challenging wider retail market, as well as manageable expiries in its office [and]business park portfolio in the next 12 months”, said the REIT in a presentation on the results.

Units of Mapletree Commercial Trust finished the trading day about 0.6% lower from its previous close the Singapore Exchange to end at SGD1.545.