[SINGAPORE] Sabana Industrial Real Estate Investment Trust (Sabana Reit) posted a distribution per unit (DPU) of S$0.0086 for the quarter ended Mar 31, up 26.5 per cent from S$0.0068 in the same period a year ago.
This came on the back of 27 per cent higher distributable income, which stood at S$9.8 million at the end of the period, led by higher net property income (NPI) and partially offset by higher finance costs, said the Reit’s manager on Tuesday (Apr 15).
NPI for the period grew 22 per cent on the year to S$16 million, on higher gross revenue and lower property expenses.
Gross revenue stood at S$29.1 million, up 4.6 per cent year on year on the back of higher occupancy and rental reversions.
Occupancy rate was up 1.4 percentage points at 86.4 per cent as at Mar 31, from the 85 per cent as at end-2024, while rental reversion stood at 15.3 per cent for the first quarter of 2025, following four consecutive years of positive double-digit rental reversions, noted the manager.
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The Reit’s weighted average lease expiry by gross rental income was 2.7 years as at end-March.
On capital management, its aggregate leverage stood at 37.8 per cent with a weighted average debt maturity of 2.7 years as at the end of the quarter. Some 72.6 per cent of borrowings were on fixed rates with an average term of 2.1 years.
The manager noted that some S$75 million in debts is due for refinancing in March 2026. “The group is currently in discussions with its bankers to explore options for extending or refinancing the loan facilities.
“The group’s financial position remains adequate and given the moderate gearing ratio and 100 per cent unencumbered portfolio, the manager believes that the group will be able to meet its funding requirements when the loans become due.”
Donald Han, chief executive officer of Sabana Reit’s manager, noted that the Reit’s 2025 performance is expected to be challenged by economic uncertainties from trade disruptions and the potential imposition of US tariffs.
“The manager is closely monitoring these developments and assessing their impact on the broader market and the Reit’s operations, while constantly engaging the Reit’s tenants,” said Han.
He added that the manager’s key focus is to optimise the Reit’s portfolio occupancy, which has seen a steady rise from 78.8 per cent in the second quarter of 2024.
“Despite inflationary cost pressures, we are committed to mitigating the operational costs of our common areas and stabilising service charges so as to attract and retain cost-conscious tenants,” he said.
Units of Sabana Reit closed Tuesday down 1.4 per cent, or S$0.005, at S$0.34 before the results were released.
