In 2017, Sabana REIT had lost its general mandate, and its DPU recorded a sharp fall of more than 20% because management fees had to be paid in cash. Some 80% of DPU used to be paid in units. According to a statement in its FY2017 presentation, the DPU in 2017 was 3.31 cents. However, it would have been 3.56 cents if 80% of base fees had been paid in cash.
Donald Han, CEO of Sabana Industrial REIT’s manager, sees Sabana REIT as a small oil tanker that has ambitions to grow into a big oil tanker. “I said in our 2018 AGM we want to grow into a big oil tanker and we should have all the levers for this.”
When Han joined the REIT’s manager as CEO in January 2018, occupancy was 85.5%. As at March 31 this year, occupancy stood at 92.6%. Aggregate leverage has fallen significantly since the turbulent months of 2017, when a bunch of retail unitholders requisitioned an EGM to remove the manager. From 43.2% as at end-Dec 2016, aggregate leverage fell to 32.4% as at end-Dec 2022. As at March 31 this year, aggregate leverage is at 33.1%.
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