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.

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