Sabana Industrial REIT posted a 16.0 per cent rise in net property income to S$16.88 million for the quarter ended Sept 30, 2025, as higher occupancies and firmer rents lifted earnings. Gross revenue grew 5.3 per cent year-on-year (YoY) to S$29.92 million, offsetting increased financing costs and marking the trust’s strongest quarterly distribution performance since early 2018.

Income available for distribution rose 38.2 per cent to S$11.31 million, translating to 1.01 Singapore cents per unit—unchanged from the previous quarter but 38.4 per cent higher YoY. The manager did not declare a distribution for the period.

Higher rental income from key assets, notably the flagship New Tech Park and several logistics facilities at Penjuru Lane and Serangoon North Avenue 5, underpinned the top-line expansion. Portfolio occupancy improved to 87.0 per cent from 85.7 per cent three months earlier, while New Tech Park’s take-up jumped to 94.7 per cent, eclipsing the 76.7 per cent national average for business parks. The trust achieved its 19th consecutive quarter of positive rental reversions, booking an 11.3 per cent uplift in 3Q.

Finance costs inched up 1.6 per cent YoY to S$3.64 million amid higher borrowings and the replacement of earlier, lower-cost hedges. Aggregate leverage ticked up to 38.0 per cent, with 72.6 per cent of total debt on fixed rates and a 4.31 per cent weighted average financing cost. The interest-coverage ratio stood at 3.4 times.

Looking ahead, management is re-evaluating plans to add about 200,000 square feet of gross floor area at New Tech Park under the project’s Phase 3 enhancement, citing the asset’s consistently above-market occupancy as a solid foundation for intensification. The trust has also completed rooftop solar installations at nine properties, generating 6,489 MWh of electricity in the first eight months of 2025—about 8.1 per cent of total consumption—and has reiterated its goal of becoming one of Singapore’s first carbon-neutral industrial REITs by 2040.

Chairman Tan Cheong Hin and chief executive Donald Han said the team’s focus on disciplined capital management, asset-enhancement initiatives and multi-tenant leasing had underpinned the strong year-to-date performance. They added that, barring unforeseen circumstances, Sabana REIT remains on track to deliver a double-digit percentage increase in income available for distribution per unit for the full-year 2025.

The manager also noted that discussions with lenders are under way to refinance facilities maturing in March 2026, even as the trust proceeds with its previously announced internalisation process.