Sabana Shari'ah Compliant REIT's New Tech Park. (Photo: REITsWeek)Sabana Shari'ah Compliant REIT's New Tech Park. (Photo: REITsWeek)

Singapore-listed industrial REIT, Sabana Shari’ah Compliant REIT (Sabana REIT), has requested for a halt in the trading of its units on the Singapore Exchange after prices fell by more than 3.5% on the bourse.

Units of Sabana REIT fell to around SGD0.54, its lowest in 52 weeks, by 11.30 a.m. on 24 June before trading was subsequently suspended around noon.

The fall comes against the backdrop of reports that ratings agency Standard & Poor’s (S&P) has downgraded the REIT’s long-term corporate credit rating to 'BB+' from 'BBB-'. The rating has since been withdrawn at the REIT’s request.

In response to these reports, Sabana REIT clarified on the same day that it had requested S&P to withdraw the ratings before the downgrade was issued on 23 June.

Sabana REIT also said that there are no certainties surrounding a proposed built-to-suit development and an equity-raising exercise said to be in connection with the development.

“The manager wishes to clarify that the method of funding, be it equity or debt funding or a combination of both, would only be determined at a later date when any definitive agreements have been entered into”, said the REIT’s manager in its statement.

“In the meantime, unitholders are advised to refrain from taking any action in respect of their units in Sabana REIT which may be prejudicial to their interests, and to exercise caution when dealing in the units”, it added.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.