Sabana REIT property, 10 Changi South Street 2. (Photo: Google Maps)

Sabana REIT has terminated the lease on 10 Changi South Street 2, and warned that there could be a negative impact on its distribution per unit (DPU) for 4Q 2018.

The lease was terminated as the property’s tenant, Adviva Distribution Pte Ltd, has failed to pay rent, and other sums due under its lease agreement with the REIT.

10 Changi South Street 2 contributed approximately 6.5% of Sabana REIT’s gross revenue for its 2Q 2018.

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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.