Sabana Industrial Reit’s portfolio occupancy rises to 92.6% in Q1

SABANA Industrial Real Estate Investment Trust (Reit) posted a rise in its portfolio occupancy to 92.6 per cent as at Mar 31, up from 91.2 per cent as at Dec 31, 2022.

The Reit saw strong leasing momentum backed by robust demand from third-party logistics providers between January and March this year, with significant growth in demand for the Reit’s warehouse and logistics properties, its manager said in a bourse filing on Monday (Apr 10).

The Reit’s total portfolio occupancy excludes its property at 1 Tuas Avenue 4, which is undergoing asset enhancement initiatives.

In the quarter, the Reit’s manager executed 25 new and renewed leases totalling 336,650 square feet (sq ft).

This includes a new lease totalling 24,300 sq ft at 10 Changi South Street 2; a new 30,530 sq ft lease at 34 Penjuru Lane; and two new leases totalling around 66,000 sq ft at 51 Penjuru Road.

The manager also signed a forward renewal with a master tenant – technology distributor and solutions provider Avnet – and achieved positive rental reversion. The next master lease renewal in the Reit’s portfolio is due in the second half of 2024.

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For Q1, the Reit achieved positive rental reversion of 13.6 per cent.

Donald Han, chief executive of the Reit’s manager, expects the strong leasing momentum to remain in the second quarter.

He said: “The manager seeks to strengthen the Reit’s tenant mix to include tenants from the defensive and expansionary sectors and ensure a well-diversified tenant base to enhance cash flow resilience against current global challenges.”