Singapore-listed office landlord OUE Commercial REIT has achieved a DPU of 1.32 Singapore cents for its 3Q 2016, an increase of 29.4% compared to the 1.02 cents recorded for the corresponding period in 2015.

Gross revenue for the period increased by about 114% year-on-year to SGD44.2 million (USD31 million), while net property income came in 127% higher at SGD35.3 million.

Correspondingly distributable income for the period came in at SGD17.2 million, 31.6% higher than the SGD13 million recorded for 3Q 2015.

The REIT has attributed the results mainly to contribution from One Raffles Place, which was acquired in October 2015, and improved performance at OUE Bayfront, and Lippo Plaza.

“While the increase in distribution was underpinned by contribution from One Raffles Place, healthy organic growth of 8.5% in 3Q 2016 net property income from the initial portfolio comprising OUE Bayfront and Lippo Plaza also boosted earnings”, said Tan Shu Lin, CEO of the REIT’s manager.

OUE Commercial REIT’s committed portfolio occupancy for the quarter was at 94.4%, relatively stable compared to 94.5% a quarter ago, with positive rental uplifts of 1.2% and 0.9% at OUE Bayfront and One Raffles Place, respectively.

Meanwhile its Lippo Plaza property saw a 10.3% uplift over preceding rents over the same period.

As at 30 September 2016, the REIT’s aggregate leverage was 40.8%, with a weighted average cost of debt of 3.4% per annum.

“Notwithstanding the challenging operating environment, the manager will continue its proactive efforts to attract new tenants as well as retain existing tenants”, said the REIT in a statement on the results on 1 November.

Units of OUE Commercial REIT finished the trading day about 0.7% lower from its previous close on the Singapore Exchange to end at SGD0.69.