SINGAPORE (Jan 23): Sabana Shariah Compliant Industrial Real Estate Investment Trust’s distributions per unit (DPU) in 4QFY2019 managed to rebound, rising 8.5% y-o-y to 0.77 cents. DPU in FY2019 fell 8.2% to 2.92 cents. Gearing fell to 31.1%.

Donald Han, CEO of Sabana REIT’s manager says he doesn’t plan to use his debt headroom to buy a property to increase DPU. “I’m looking within our portfolio to grow the revenue stream. I will remain focused on our current portfolio where there is potential to optimise [revenue] further.”

As an example, Sabana REIT is undertaking AEI on its largest property New Tech Park (NTP). NTP was built to a plot ratio of 1.95 times but had an allowable plot ratio of 2.5 times. Phase 1 of NTP’s AEI comprises building net lettable area of 30,000 sq ft of retail space. Although NTP is a B1 industrial property, it is located in a residential neighbourhood in Lorong Chuan, and a couple of minutes walk from an MRT.

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