Sabana Industrial REIT NPI inches up 0.5% YoY to $27.2m in H1

Its gross revenue was up 23.2% YoY to $55.3m.

Sabana Industrial Real Estate Investment Trust (REIT) posted a slight net property income (NPI) increase of 0.5% year-on-year (YoY) to reach $27.2m as utility costs offset revenue growth.

In a statement, Sabana Industrial REIT recorded a 23.2% YoY increase in revenue to reach $55.3m due to a higher portfolio occupancy rate but the higher proper expenses offset the growth.

“Despite operational challenges and intensified upheaval in recent months, we have stayed focused and delivered another set of impeccable financial results, with improved gross revenue of $55.3 million, a new high in portfolio occupancy rate of 93.9% and a record rental reversion of 27.1%, all of which translated into a larger total distributable amount of $17.8 million and a higher (distribution per unit) of 1.61 cents,” said Sabana Industrial REIT Manager’s CEO Donald Han.

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Sabana Industrial REIT manager said it will “remain vigilant” to do downside risks due to the construction of the Lion City’s overall factory activity from April to June.

“As Fed officials project additional interest rates hike in the second half of 2023, the Manager has further optimised the REIT’s capital structure to mitigate risks from rising interest rates,” it said.

“The Manager is also focused on its tenant management and leasing strategy to protect valuation and net asset value, amid the challenge of declining land tenure of its portfolio properties,” it added.