Sabana Reit's Q3 DPU falls to 0.79 Singapore cent

LOWER contribution from some of its properties and an expansion in the number of units eroded third-quarter results for industrial landlord Sabana Reit.

For the three months ended Sept 30, the Reit's third-quarter distribution per unit dropped to 0.79 Singapore cent from 1.06 Singapore cents in the previous year.

The fall came as the trust's unit base grew from some 844.6 million units in Q3 last year to 1.05 billion units, and income available for distribution fell 5.9 per cent to S$8.3 million from the previous year.

Gross revenue dropped 9.4 per cent to S$20.9 million, year on year.

The decline in gross revenue was due to, among other things, non-recognition of revenue from the properties at 1 Tuas Avenue 4 and 6 Woodlands Loop in Q3 2017, as collections from the master tenants "are no longer probable", according to the Reit, as well as a lower contribution from 39 Ubi Road 1 which was converted into multi-tenanted lease arrangements in Q4 2016.

Net property income shrank 3.7 per cent to S$13.4 million from the preceding year.

Sabana Reit units closed unchanged at S$0.47 on Monday, before its results were released.