Sabana Industrial Real Estate Investment Trust (REIT) has announced a significant 27.2% year-on-year increase in income available for distribution per unit for the first half of 2025, reaching 1.87 cents. This marks the highest level since the first half of 2018. The REIT’s net property income also saw a substantial rise of 23.4% year-on-year, amounting to $33.5m, supported by higher occupancy rates and positive rental reversions.
The REIT’s gross revenue for the first half of 2025 increased by 7.6% year-on-year to $59.3m. The declared distribution per unit rose by 26.9% to 1.70 cents. Despite a slight decline in portfolio occupancy to 85.7% as of 30 June 2025, the REIT has maintained a strong performance with 92.2% of its gross rental income derived from multi-tenanted properties.
Chief Executive Officer of the Manager of Sabana Industrial REIT, Donald Han, stated, “We are very encouraged by the sterling performance of the REIT’s portfolio in 1H 2025, enabling the Manager to achieve a significant 27.2% y-o-y increase in 1H 2025 income available for distribution per unit to 1.87 cents, highest since 1H 2018.”
The REIT has proactively engaged tenants, beginning lease renewal discussions 12 months ahead of expiries, compared to the previous six to nine months. This strategy has resulted in the renewal or activation for renewal of approximately 60.1% of leases expiring in FY2026. The REIT’s performance underscores its ability to extract value from existing assets and deliver growth organically, despite external challenges.
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