Mapletree Industrial Trust has announced a DPU of 2.83 Singapore cents for its 3Q FY16/17, 0.4% higher than the 2.82 cents recorded in the corresponding period of the previous financial year.

Gross revenue for the quarter increased by 1.4% to SGD84.5 million (USD60 million) while net property income (NPI) grew by 2.5% to SGD63.4 million.

Subsequently distributable income for the period was SGD51.1 million, a year-on-year increase of 1.6% from the SGD50.3 million achieved in 3QFY15/16.

“The improved year-on-year performance was driven by higher rental rates achieved across all property segments as well as revenue contribution from phase one of the build-to-suit (BTS) development for Hewlett-Packard, but partly offset by lower portfolio occupancy”, said the REIT in its statement on the results.

“With a low aggregate leverage ratio of 29.4%, [Mapletree Industrial REIT] remains focused on executing existing development initiatives, and pursuing investment opportunities to create value for unitholders”, said Tham Kuo Wei, CEO of the REIT’s manager.

The REIT’s average portfolio passing rental rate for the quarter increased to SGD1.93 per square foot per month with an average portfolio occupancy of 92.1%.

On its outlook for the quarters ahead, the REIT has indicated that it remains cautious of global uncertainties, and rising interest rates.

“The continued supply of competing industrial space in Singapore and movement of tenants are expected to exert pressure on rental and occupancy rates”, said Mapletree Industrial Trust.

“The manager continues to focus on tenant retention to maintain a stable portfolio occupancy”, the REIT added.

Units of Mapletree Industrial Trust finished the trading day about 1.2% lower from its previous close on the Singapore Exchange to end at SGD1.645.