Keppel Land’s listed trust K-Reit Asia reported on Tuesday a 37.3 per cent surge in Q1 distributable income as it saw higher rents from new and renewed leases.

Distributable income for the three months ended March 31, 2009 rose to $15.7 million, from $11.4 million in Q1 2008.

But distribution per unit fell to 2.38 cents, from 4.60 cents, on the back of new shares issued during the trust’s May 2008 rights issue.

Given the uncertainties ahead, K-Reit’s manager said it will place emphasis on tenant retention and seek to improve operational and cost efficiencies, the trust said. K-Reit Asia will also make selective asset acquisitions should opportunities arise, it added.