Han’s target at the time was to raise the occupancy rate to around 88%. Still, NAV should be rising because of asset enhancement initiatives (AEIs). When Han was appointed CEO, he unveiled three main strategic initiatives. The first was to drive revenue and occupancy rate by ramping up marketing efforts and focusing on retaining key tenants, as well as divesting non-performing assets.
SINGAPORE (Nov 18): Sabana Shari’ah Compliant Industrial Real Estate Investment Trust’s distributions per unit in 3QFY2019 rose 1.3% y-o-y to 0.78 cent. For the nine months to Sept 30, however, DPU continued to show a decline to 2.15 cents, down 13% y-o-y.
On the other hand, its net asset value (NAV) is now 56 cents, up 3.7% from the beginning of 2018, when Donald Han, CEO of Sabana REIT’s manager, took over. The REIT’s gearing fell sharply and is now just 30.8%. Financing costs are lower, and interest cover is higher. On the flip side, the occupancy rate, at 80.6%, is lower than the 85.4% level as at end-FY2017.
