Sabana REIT property at 23 Serangoon North Avenue 5. (Photo: REITsWeek)

Data from Sabana REIT’s latest results is reflected in the Singapore REITs table

Sabana Industrial REIT (Sabana REIT) disclosed on 19 July that its gross revenue for 1H 2023 rose by 23.2% year-on-year to SGD55.3 million.

This rise was driven by the REIT’s higher portfolio occupancy rate.

However, the growth in revenue was largely offset by higher property expenses, which resulted in the marginal NPI increase of 0.5% year-on-year to SGD27.2 million.

Against this backdrop, Sabana REIT’s DPU for 1H 2023 rose by 1.3% to 1.61 cents for 1H 2023, as compared to 1.59 cents in 1H 2022.

The REIT’s overall occupancy rate has improved to 93.9% as at 30 June 2023 compared to 91.3% a year ago.

The improvement in occupancy rate is underpinned by the strong leasing momentum backed by robust demand from third-party logistics providers in the first half of 2023, said the REIT.

For 1H 2023, the REIT executed a total of 40 new and renewed leases totalling 533,656 square feet and achieved a tenant retention rate of 84.8%.

Sabana achieved rental reversions of 27.1% and 20.1% for 2Q 2023 and 1H 2023 respectively, following two consecutive years of positive double digit rental reversions in FY 2021 and FY 2022.

As at 30 June 2023, aggregate leverage was at 32.5%, amongst the lowest for Singapore-listed REITs.

Its weighted average all-in cost of borrowing was 3.89% with 82.2% of total borrowings hedged to fixed rates.

Sabana REIT was last done on the SGX at SGD0.43, which presently implies a distribution yield of 7.49% according to data on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.