Sabana Industrial REIT (Sabana REIT) disclosed on 19 April that its portfolio occupancy has reached 92.6%, which is the highest since 1Q 2021.

In 1Q 2023, it signed 180,262 square feet of new leases with tenants and this was driven mainly by demand for warehouse and logistics properties by third-party logistics providers, said the REIT.

New leases were secured at 10 Changi South Street 2, 34 Penjuru Lane, 51 Penjuru Road, 15 Jalan Kilang Barat and New Tech Park, amongst others, it added.

In addition to this, Sabana REIT renewed 156,388 square feet of leases with a positive 13.6% rental reversion.

The only master lease that is due to expire in 2023 has been renewed for a further term, while the next master lease renewal is due only in 2H 2024.

“While the outlook for the industrial property sector remains mixed as we enter 2023, demand for our warehouse and logistics properties from third party logistics service providers was strong, particularly during 1Q 2023”, said Donald Han, CEO of the REIT’s manager.

As at 1Q 2023, SAbana REIT’s aggregate leverage ratio was at 33.1%, with 80.0% of its borrowings on fixed rates.

Sabana REIT was last done on the Singapore Exchange at SGD0.45, which presently implies a distribution yield of 6.78% according to data on the Singapore REITs table.