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Sabana REIT posts FY2015 DPU of 6.85 cents
By Gwyneth Yeo / theedgemarkets.com | January 25, 2016 : 7:56 PM MYT
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SINGAPORE (Jan 25): Sabana Shari’ah Compliant Industrial Real Estate Investment Trust has posted 6.85 cents in distribution per unit for FY2015, a 6.5% decrease from the 7.33 cents announced in FY2014.
Distributable income fell 2.9% to $50.1 million.
Revenue rose marginally to $100.8 million for the year to December. Net property income declined 1.8% to $71.6 million due to negative rental revisions for some of its master lease renewals and higher vacancies seen in 4QFY2015. The REIT also recorded higher property expenses from the conversion of three master lease properties into multi-tenant leases.
During the quarter, portfolio occupancy fell four percentage points to 87.7%. The REIT had also sold 200 Pandan Loop, Pantech 21 for $38 million during the quarter.
The trust manager says it expects the Singapore economy to be subdued for 2016 and remains committed to improve the portfolio occupancy and implement productivity and cost control measures. It adds that it is focused on renewing or securing new master leases for three of its four master leases expiring in 11 months, with the fourth expected to be converted into a multi-tenanted building.
Sabana REIT’s units closed 1.45% higher at 70 cents.