SINGAPORE - Viva Industrial Trust, a Singapore-focused business park and industrial property trust, said its third quarter distribution per stapled security grew by 9.9 per cent to 1.81 cents.
Gross revenue for the three months to Sept 30 rose by 31.9 per cent to S$24.3 million while net property income soared by 39.2 per cent to S$17.4 million.
Distributable income climbed by 35.2 per cent to S$15.7 million.
The trust's weighted average portfolio occupancy continued to climb to 88.6 per cent in third quarter from 87 per cent at end December, and reflected a marked improvement from the occupancy of 70.1 per cent at the time of its initial public offering.
The strong financial performance continued to be driven by the successful acquisition of three newly-acquired properties: Home-Fix Building, 11 Ubi Road 1 and 30 Pioneer Road; as well as the asset enhancement initiative (AEI) at Viva Business Park.
Gross revenue was boosted by additional rental contribution of S$2.6 million from Home-Fix Building and 11 Ubi Road 1, additional rental contribution of S$1.1 million from 30 Pioneer Road, as well as higher rental contribution from "white" space units at 750 and 750A, and other income at the business park by S$2 million.
Overall, the three newly-acquired properties accounted for over 63 per cent of the year-on-year growth in gross revenue, while the business park contributed over 34 per cent of the year-on year growth.
To counter the subdued property market and economic conditions in Singapore, the Reit manager continued its proactive asset and lease management strategy and has been successful in securing about 502,000 square feet of lease renewals and new leases in the first nine months of 2016, excluding pre-committed leases in respect of the "white" space at Viva Business Park.
Phase 2 of the AEI was completed while Phase 3 at 750B is expected to be done by the fourth quarter.
With the scheduled completion of all AEI works, Viva Business Park is expected to progressively contribute additional income to the trust.
During the third quarter, the Reit manager also secured a new anchor tenant, a leading household name with a showroom and retail chain in Singapore.
The unidentified anchor tenant has taken up the remaining "white" space of some 38,000 sq ft on the ground floor and second floor of 750B, and will unveil a new consumer experience at the business park early next year.
Overall, the Reit Manager has now secured committed leases for more than 93 per cent of the total "white" space at Viva Business Park from 21 tenants supporting the three core themes of Sports and Fitness, Food and Beverage and Family-Oriented amenities, which have brought greater vibrancy to the business park and the Chai Chee neighbourhood.