Sabana REIT catches a break as unitholders retain general mandate and DRP

The Edge Singapore
The Edge Singapore 4/27/2021 11:33 AM GMT+08  • 4 min read
Sabana REIT catches a break as unitholders retain general mandate and DRP
Sabana REIT's investors approve of general mandate and DRP, which is for long term investors who wish to receive units.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

In the past almost one year, Sabana Shariah Compliant Industrial REIT has received outsized attention despite its relatively modest size. This is partly due the completion of NTP+, a new mall that will raise rental revenue; and partly due to the barrage of open letters from Quarz Capital which railed against its proposed merger with ESR-REIT - successfully as it so happened.

Subsequently Quarz Capital started a campaign to remove Sabana REIT’s general mandate and its distribution reinvestment plan (DRP). This is more curious. And, as it happened, on April 27, unitholders voted by 61.76% to retain the general mandate and by 61.87% to keep the DRP in progress. The general mandate and DRP are ordinary resolutions requiring a simple majority.

Unitholders should want what is best for the REIT. A general mandate would enable the REIT to grow with accretive acquisitions if possible, thereby raising distributions per unit (DPU). Quarz Capital itself had at one point hoped that Sabana REIT’s DPU could grow by 30% in a year.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now