Sabana Reit unitholders revolt: a tale of lost trust

A UNITHOLDER revolt unlike any other in Singapore's largely steady and uneventful real estate investment trust space is showing up the unattractive spots in one of the city state's most exalted success stories and with that, could turn the sector into a hotbed for reforms.

At the heart of the backlash at Sabana Shari'ah Compliant Industrial Reit are several key flashpoints - drooping distribution per units (DPU), overpriced acquisitions backed by sale and leaseback arrangements and handsome fee payouts to the Reit manager.

Underpinning that - and this is key - is unitholders' loss of trust in Sabana Reit's manager, Sabana Real Estate Investment Management, the one squarely tasked with bringing in the DPU digits.