Sabana REIT’s DPU dips by 2.4% in 3Q14

Due to rent-free period for new tenants.

Sabana REIT continues to be faced with the challenge of improving occupancy level amidst a more subdued industrial property market.

In a media release, Sabana REIT announced a distributable income of S$12.7 million for3Q14. This translates to quarterly DPU of 1.81 Singapore cents for a unit base of 699.7 million Units, down from last year’s S$2.38.
The Manager’s Chief Executive Officer and Executive Director, Mr Kevin Xayaraj, said, “Distributable income dipped by 2.4% partly due to rent‐free period granted to new tenants secured during the quarter. Overall portfolio occupancy increased to 91.8% in 3Q 2014, from 90.8% in 2Q 2014.”

Here’s more from Sabana REIT:

On 21 August 2014, Sabana REIT announced the proposed acquisition of 10 Changi South Street 2, a purpose‐built part single‐storey/part six‐storey warehouse building with ancillary office areas, located within the Changi South Industrial Estate. The property is strategically located next to Changi Business Park, approximately 13.5 kilometres from the city centre. The estimated total cost of the acquisition is S$55.1 million.

The acquisition of 10 Changi South Street 2 will be financed with a combination of equity, which will be by way of issue of new units to the vendor, and borrowings, which will be financed by the issuances of Fixed Period Distribution Trust Certificates under Sabana REIT’s S$500.0 million Multicurrency Islamic Trust Certificates Issuance Programme.