Data from Sabana REIT’s latest disclosure has been updated into the Singapore REITs table.

Sabana Industrial REIT (Sabana REIT) has begun a major asset enhancement initiative (AEI) on its asset at 1 Tuas Avenue 4.

The revelation came as the REIT announced its results for its 1H 2022 on 20 July.

Gross revenue for the period rose by 14.7% year-on-year to SGD44.9 million.

Sabana REIT has attributed this mainly to higher portfolio occupancy of 88.2%, underpinned by a newly secured 10-year master lease for 30 & 32 Tuas Avenue 8.

Accordingly, its net property income (NPI) increased 5.2% year-on-year to SGD27.0 million.

The total amount available for distribution for 1H 2022 was SGD17.1 million, 9.6% higher compared to 1H 2021.

DPU rose by 7.4% to 1.59 cents for 1H 2022, as compared to 1.48 cents in 1H 2021.

In tandem with these updates, Sabana REIT also revealed that it is developing 1 Tuas Avenue 4 into a 165,000-square foot facility with “green” features, such as reduced energy consumption.

The lettable area includes 61,000 square feet with 25 metre ceiling height that can be incorporated with an automated storage and retrieval system (ASRS).

The redeveloped asset will eventually feature a three-storey annex block for warehouse, storage and ancillary spaces.

These spaces can also be converted to a multi-temperature controlled warehouse, said Sabana REIT.

The AEI is expected to complete in 2H 2023.

Sabana REIT has not disclosed the costs associated with the AEI.

But in response to questions from REITsWeek, the REIT has clarified that the AEI will be funded with internal cash resources.

Sabana REIT was last done on the Singapore Exchange at SGD0.445, which presently implies a distribution yield of 7.15% according to data on the Singapore REITs table.