Sabana Industrial Reit’s occupancy hits 89.1% for Q3 2022
Benjamin Cher
SABANA Industrial real estate investment trust’s (Reit) third quarter 2022 occupancy has hit a high of 89.1 per cent, a level not seen since Q3 2017. Without 1 Tuas Avenue 4, which is undergoing asset enhancement, total occupancy would have been 92.2 per cent.
The Reit has signed 83,588 square feet (sq ft) of new leases and renewed 71,266 sq fft of leases. The renewals come with a positive 10.2 per cent rental reversion, Sabana Reit’s 10th positive quarterly reversion since the first quarter of 2020. But the rental reversion is lower than 17.4 per cent for the second quarter of 2022
The weighted average lease expiry for Q3 2022 stands at 2.7 years, a dip from 2.8 years for Q2 2022.
The bulk of the borrowings for the Reit (73.3 per cent) are on fixed rates and the weighed average fixed debt expiry of 2.2 years. The aggregate leverage ratio for Sabana Reit stands at 33.7 per cent.
There is a proposal to convert 1 Tuas Avenue 4 into a brand new warehouse and logistics facility, subject to approval from the authorities. There are ongoing discussions with prospective tenants for the property.
“As we forge ahead, we are doing our utmost to manage our costs, optimise our funding sources, and seize opportunities that will enhance our portfolio resilience,” said Donald Han, chief executive officer, Sabana Industrial Reit manager.
Units of Sabana Reit closed down S$0.005 or 1.2 per cent to S$0.405 on Wednesday (Oct 19).
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