The manager of Sabana Industrial REIT has reported a portfolio occupancy of 91.8% for the 3QFY2023 ended Sept 30, a dip from the 93.9% in 2QFY2023.
The REIT’s weighted average lease expiry (WALE) stood at 3.1 years as at Sept 30, higher than the 2.8 years in the quarter before.
In the 3QFY2023, the REIT signed 111,440 sq ft. of new leases mainly for the REIT’s warehouse and logistics properties.
The REIT also renewed 212,735 sq ft. of leases with a positive 16.8% rental reversion, continuing the positive quarterly reversions since 1QFY2021. However, this is a decline from the 27.1% of rental reversion in the quarter before.
It has also renewed its anchor tenant lease at 508 Chai Chee Lane.
As at Sept 30, the REIT’s aggregate leverage stood at 33.8%, with 78.5% of borrowings at fixed rates. The REIT’s next refinancing is in 4Q2025.
In this 3QFY2023, the REIT’s average borrowing maturity stands at 3.1 years, and interest coverage ratio at 3.4 times.
The REIT’s debt headroom stood at $145.7 million as at end September.
Donald Han, CEO of Sabana Industrial REIT says: “The past few months have been a difficult period with the unprecedented uncertainties arising from the passing of resolutions tabled at the Extraordinary General Meeting on Aug 7, to internalise the REIT management function. As the interim manager of the REIT, our focus since has primarily been on motivating our staff, stabilising our portfolio and executing ongoing major capex projects including the 1 Tuas Avenue 4 asset enhancement initiative, which was 45% completed as at end September. Amid the prevailing significant challenges, we achieved a portfolio occupancy of 91.8% and a positive rental reversion of 16.8% for 3QFY2023. We are on track with our solar panel installation setselected properties, of which two of the four installations have been completed.”
Units in Sabana Industrial REIT closed 0.5 cents higher or 1.3% up at 39 cents on Oct 18.
