The manager of Sabana Industrial REIT has reported a distribution per unit (DPU) of 1.46 cents for the 2HFY2022 ended Dec 31, 2022, 7.0% lower than the DPU of 1.57 cents for the 2HFY2021.
See: Why has Sabana REIT delayed its FY2022 results and DPU announcement?
The REIT’s DPU for the FY2022 stood flat at 3.05 cents.
For the 2HFY2022, the REIT’s gross revenue increased by 16.9% y-o-y to $50.1 million mainly from higher contributions from several of the REIT’s properties including New Tech Park and 30 & 32 Tuas Avenue 8.
Net property income (NPI) for the period stood stable at $26.3 million.
The total amount available for distribution for the 2HFY2022, however, fell by 5.6% y-o-y to $15.9 million due to higher interest expenses. The lower DPU was also attributed to the higher interest expenses.
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Meanwhile, the REIT’s gross revenue for the FY2022 increased by 15.9% y-o-y to $94.9 million.
NPI for the FY2022 grew by 2.6% y-o-y to $53.3 million.
The total amount available for distribution during the FY2022 inched up slightly to $33.1 million, up by 1.7% y-o-y.
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As at Dec 31, 2022, the REIT’s total occupancy rate stood at 91.2% with a portfolio weighted average lease expiry (WALE) of 3.0 years by gross rental income (GRI).
The REIT’s rental reversion stood at 17.4% for the 4QFY2022. For the FY2022, the REIT’s rental reversion stood positive at 12.9%.
As at Dec 31, 2022, the REIT’s aggregate leverage stood at 32.4% with a debt headroom of $156.1 million. Cash and cash equivalents as at Dec 31, 2022, stood at $8.0 million, down from the $25.9 million as at Dec 31, 2021.
As at Dec 31, 2022, the REIT’s portfolio valuation increased by 2.3% y-o-y to $885.7 million.
“Our focused strategy on proactive leasing to drive occupancy and tenant diversification has continued to contribute to the resilience of our portfolio, and we have achieved positive rental reversions underpinned by healthy demand,” says Donald Han, CEO of the manager.
“Our improved portfolio occupancy of 91.2% is above JTC’s industrial average of 89.4%. We remain steadfast in our target to achieve an upsized portfolio valuation of more than $1 billion between 2025 and 2027,” he adds.
“The board and management continue to place a strong emphasis on good corporate governance, and we are encouraged by the significant improvement made by the REIT in the latest Governance Index for Trusts (GIFT) 2022 report. Our overall GIFT score improved to 71.5 points in 2022 from 54 points a year ago,” says Tan Cheong Hin, chairman of the REIT’s board of directors.
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“Our 17.5-point improvement was the largest among all trusts in the study. Our ranking improved from 38th to 14th position, a large upward improvement of 24 positions,” he adds, noting that the board is also “pleased to be among the top five best performers within the S-REIT sector, with highest total returns among industrial REITs in 2022.”
Looking ahead, the REIT manager says it “continues to see steady demand in the Singapore industrial sector and remains cautiously optimistic in its mid-term outlook”.
Units in Sabana REIT closed at 45 cents on Jan 27.
