Sabana REIT has warned investors that it expects a muted performance in 1H 2019, citing challenging market conditions.

The industrial REIT recently reported a distribution per unit of 0.75 Singapore cents for its 1Q 2019, 14.8% lower than the previous corresponding quarter.

But the REIT is optimistic on its performance beyond early-2020, not least because of a significant asset enhancement initiative (AEI) that will soon transform the crown jewel of its portfolio, New Tech Park.

The property, which sits at 151 Lorong Chuan, represents approximately one third of Sabana REIT’s overall portfolio asset value.

In response to REITsWeek, the CEO of Sabana REIT’s manager, Donald Han, has given further details of enhancement work that will significantly alter the nature of New Tech Park.