Committed portfolio occupancy improved to 83.1% as at Mar 31, with the weighted average lease expiry (WALE) at 5.6 years. Almost all leases carry annual rent escalations of 2% to 3%, providing a built-in, contractual income growth mechanism.
Net property income (NPI) grew +3.3% q-o-q to US$17.2 million in 1Q2026. Distributable income of US$6.5 million was recorded for 1Q2026. The improvement in NPI and distributable income was driven by higher committed occupancy and rental contributions from new leases following the expiry of rent-free periods. As of Mar 31, leases representing 11.0% of committed occupancy will commence rent on a staggered basis from 3Q2026 onwards.
Aggregate leverage remained stable at 45.2% as at Mar 31.
Given the visibility of incoming contractual cash flows from new leases commencing in 3Q2026, the manager raised the payout ratio to 65% in 4Q2025 compared to the 10% payout ratio maintained from 2H2023 to 1H2025.
