SINGAPORE (July 26): The manager of Viva Industrial Trust has announced a 6.3% increase in distribution per stapled security (DPS) to 1.861 cents for the second quarter ended June, from 1.750 cents a year ago.
Distribution for 2Q will be payable on Aug 28, 2017.
Gross revenue grew 18.0% to $27.6 million in 2Q, from $23.4 million a year ago.
The improved y-o-y performance was mainly driven by higher revenue contribution from Viva Business Park (VBP) due to its successfully completed asset enhancement initiative (AEI), and additional rental contributions from 6 Chin Bee Avenue and 30 Pioneer Road, which were acquired by VI-REIT in January 2017 and April 2016, respectively.
Property expenses of $7.4 million for 2Q was 19.5% higher than a year ago, mainly due to higher property expenses pertaining to VBP.
Consequently, net property income (NPI) grew 17.5% to $20.2 million, from $17.2 million a year ago.
Cash and cash equivalents stood at $11.7 million as at June 30, 2017.
“The 2Q2017 results are testament to VIT’s ability to create transformational value from its properties and deliver on committed strategies,” says Wilson Ang, CEO of the manager. “We are excited to see the full effects of the successful AEI at VBP positively impacting returns with further spill-over effects to VBP’s business park space in the coming quarters.”
“VIT remains committed to aligning our growth with the government’s pro-growth programmes, with our business park-focused properties well suited for technology tenants that will drive the Singapore economy,” he adds.
Units of Viva Industrial Trust closed flat at 91.5 cents on Tuesday.
