The REIT’s weighted average lease expiry (WALE) stood at 2.8 years as at March 31, which was lower than the 3.0 years in the quarter before.

In the 1QFY2023, the REIT signed new leases totalling 180,262 sq ft. The new leases were secured at 10 Changi South Street 2, 34 Penjuru Lane, 51 Penjuru Road, 15 Jalan Kilang Barat and New Tech Park among others.

The REIT also renewed leases totalling some 156,388 sq ft with a positive rental reversion of 13.6% as at end-March, though it was lower than the positive rental revision of 17.4% as at end-December 2022.

As at March 31, the REIT’s aggregate leverage stood at 33.1% with an interest coverage ratio (ICR) of 3.8 times. The proportion of its total borrowings on fixed rates stood at 80.0%. The REIT’s debt headroom stood at $151.5 million as at end-March.

“In the climate of high energy prices, inflation and high interest rates, we remain steadfast in our course to grow value. Our portfolio occupancy in 1QFY2023 has climbed to 92.6%, the highest since 1QFY2021. Our positive 13.6% rental reversion builds on our track record of consecutive, positive quarterly reversions over the same period,” says Donald Han, CEO of the REIT manager.

<span class='see_also_inread'><b>See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/news/results/lhn-group-reports-strong-occupancy-rates-key-projects-3qfy2023-sees-steady-growth-rest?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>LHN Group reports strong occupancy rates for key projects in 3QFY2023; sees steady growth for rest of 2HFY2023</a></b></span>

“While outlook for the industrial property sector remains mixed as we enter 2023, demand for our warehouse and logistics properties from third-party logistics service providers was strong, particularly during 1QFY2023,” he adds.

Further to his statement, Han says that the REIT is set to become one of Singapore’s first carbon-neutral REITs by 2040 following its partnership with <a href="https://www.theedgesingapore.com/news/sustainability/sabana-reit-partners-keppel-eaas-build-ev-charging-solar-panels-its-properties" target="_blank">Keppel Energy-as-a-Service (EaaS)</a> to install photovoltaic (PV) solar panels and electric vehicle (EV) charging stations at some of its properties.

“We are also happy to report significant progress regarding addition and alteration works on 1 Tuas Avenue 4 on the back of the provisional permission from the Urban Redevelopment Authority (URA),” Han adds.

As at 9.30am, units in Sabana REIT are trading 1 cent higher or 2.25% up at 45.5 cents.

Sabana Industrial REIT reports portfolio occupancy of 92.6% and WALE of 2.8 years in 1QFY2023 business update

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Sabana Industrial REIT reports portfolio occupancy of 92.6% and WALE of 2.8 years in 1QFY2023 business update

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