SINGAPORE (Oct 29): Sabana Shariah Compliant Industrial Real Estate Investment Trust has been one of the better-performing REITs this year, according to Bloomberg, with a total return of 7.6% compared with an 8.7% decline in the ST FTSE REIT Index and a 9.6% fall in the Straits Times Index. This is a sea change from last year, when its manager announced a dilutive rights issue, followed by non-accretive acquisitions, which in the end were called off.

This year, with new management under Donald Han, CEO of Sabana REIT’s manager, the performance of the properties has stabilised. In a recent interview, Han indicated that he was confident of getting performance fees. Ever since its IPO in 2013, Sabana REIT’s manager has not received a performance fee because the fee’s formula is based on a 10% y-o-y rise in distribution per unit. Its DPU has mainly declined y-o-y since IPO in 2013. “We’ve never breached that but we would like to and I think we will get it,” Han says.

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