Sabana Reit nets 91.8% total portfolio occupancy in Q3
THE interim manager of Sabana Industrial Real Estate Investment Trust (Sabana Reit) on Wednesday (Oct 18) announced the real estate investment trust (Reit) had achieved total portfolio occupancy of 91.8 per cent for the third quarter ended Sep 30, down 2.1 percentage points from its second quarter occupancy of 93.9 per cent.
However, this was higher than the 89.1 per cent total portfolio occupancy it netted in the corresponding year-ago period.
The Reit’s interim business update for Q3 did not include a net income figure. It also does its distributions on a half-yearly basis.
In the update, Reit manager Sabana Real Estate Investment Management (SREIM) noted that the Reit had renewed 212,735 square feet (sq ft) of leases, higher than the 134,409 sq ft of renewed leases it logged in Q2.
In particular, the anchor tenant at 508 Chai Chee Lane renewed its lease in Q3.
The Reit reported a positive rental reversion of 16.8 per cent, down from 27.1 per cent in Q2, continuing its track record of positive quarterly reversions since Q1 FY2021, said the manager.
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In terms of new leases, it signed 111,440 sq ft of leases mainly for the Reit’s warehouses and logistics properties. This was also an increase from the 62,597 sq ft of new leases the Reit achieved in Q2 and the 83,588 sq ft signed in Q3 FY2022.
The Reit’s aggregate leverage ratio stood at 33.8 per cent in Q3, while its weighted average lease expiry is now 3.1 years.
Donald Han, chief executive of the Reit manager, said that the interim manager’s current focus is to stabilise its portfolio and execute ongoing capital expenditure projects. This includes the asset enhancement initiative at 1 Tuas Avenue 4, which was 45 per cent completed as at end-September.
“We are on track with our solar panel installations at selected properties, of which two of the four installations have been completed,” he added.
The Reit was recently in the limelight after its unitholders voted in an extraordinary general meeting to remove SREIM and internalise the Reit manager, a landmark decision for the Singapore Reit market, which has never seen an internally managed Reit.
Units of Sabana Reit closed up 1.3 per cent or S$0.005 to S$0.39 before the announcement.
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