Sabana Industrial REIT has reported a distribution per unit (DPU) of 1.70 cents for the 1HFY2025 ended June 30, up 26.9% y-o-y.

The income available for DPU for 1HFY2025 is 1.87 cents, but with the retention of about 10% of distributable income which will be deployed to fund costs incurred and to be incurred with the internationalisation, distribution amount declared per unit is 1.70 cents.

The REIT’s net property income (NPI) for the reporting period came in at $33.5 million, up 23.4% y-o-y, while gross revenue for the period stood at $59.3 million, up 7.6% y-o-y.

This was supported by higher overall occupancy and sustained positive rental reversions, the REIT says. The REIT saw higher occupancy at the majority of high-tech industrial properties including New Tech Park, Sabana@1TA4, 23 Serangoon North Avenue 5 and 15 Jalan Kilang Barat.

In 1HFY2025, total income available for distribution rose 26.8% y-o-y to $21.1 million. The total net retained amount utilised for the period from FY2023 to 1HFY2025 was $7.19 million.

For the period from Jan 1 to June 30, 2025, $0.83 million of expenses were incurred in respect of the implementation of the resolutions passed on Aug 7, 2023 to effect the internalisation, and cumulative internalisation expenses incurred up to June 30 totalled to $12.22 million.

For the 1HFY2025, the manager executed a total of 39 new and renewed leases totaling 554,859 sq ft and achieved a tenant retention rate of 62.4%. Rental reversion was a positive 12.6% for 1HFY2025, and weighted average lease expiry (WALE) by gross rental income for the period was 2.8 years, with land leases averaging 25.9 years by gross floor area (GFA).

As at June 30, overall portfolio occupancy stood at 85.7%, and aggregate leverage was 37.7% with a weighted average debt maturity of 2.4 years.

The REIT while the internalisation process is currently still ongoing, the Manager has approached the lenders for the potential extension of the loan facilities maturing in March 2026 totaling $75.0 million. There is no certainty of loan extension approval.

Units in Sabana Industrial REIT closed 1 cent higher or 2.50% up at 41 cents on July 23.