In its 3QFY2020 business update, Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana REIT) signed 304,622 sq ft of new leases and renewed 586,043 sq ft after the circuit breaker measures were lifted.
As such, the REIT saw an increase in its portfolio occupancy to 80.2%, up from 77.3% as at June 30, with a weighted average lease expiry (WALE) of 2.7 years.
The REIT’s asset enhancement initiative (AEI) on New Tech Park, which will be renamed to NTP+ is slated for its temporary occupation permit (TOP) in 1Q2021.
Rental contributions are expected to start from 2QFY2021 onwards.
On tenant support, the manager says it will pass on government rental reliefs to its tenants by 4QFY2020.
“According to Knight Frank Research, leasing volume for industrial space declined more than a third in the past quarter, and Sabana has not been immune to the pandemic’s impact. The global economy still remains challenged today, with the Singapore government expecting more job losses in the coming months,” says Donald Han, CEO of the manager.
On leasing updates, Han adds that the REIT has signed “close to 900,000 sq ft in leases having improved our portfolio occupancy while continuing to achieve positive rental reversion”.
“However, going into 2021, Covid-19 will continue to be a challenge,” he adds.
As at 9.35am, units in Sabana REIT are trading flat at 34.5 cents.
See also: Sabana REIT issues clarifications on proposed merger
