Sabana Industrial REIT reported Thursday its portfolio occupancy improved in the third quarter to 85.3 percent, its highest since 2018, with 90,600 square feet of new leases signed, including multinational corporations (MNCs) in expansionary sectors such as healthcare, ambient and cold-chain logistics.
Leases for around 59,729 square feet of space were renewed in the quarter with a positive rental reversion of 7.8 percent, marking positive reversions for six of the seven previous quarters, the REIT said in a filing to SGX.
Donald Han, CEO of the REIT’s manager, said the REIT had gone “from strength to strength” as it executes its “refreshed strategy,” but he also pointed to some caution.
“The recent re-tightening of Covid-19 measures and persistent macroeconomic uncertainty mean that Singapore’s recovery and growth will remain uneven,” Han said in the statement.
The new NTP+ mall, an addition to the existing New Tech Park property, reached 100 percent occupancy as of end-September, the REIT said.
Excluding the 1 Tuas Avenue 4 property, which is held for divestment, portfolio occupancy would have been 88.3 percent, the REIT said.
The occupancy for multi-tenanted properties rose a nearly eight-year high of 90.7 percent, after “deliberate efforts” were made to diversify the portfolio’s risk profile as part of the overall refreshed strategy, Sabana REIT said.
The REIT said its refreshed strategy includes divesting non-performing and mature assets, actively managing the portfolio, and undertaking asset enhancement initiatives (AEI).
As of Thursday, the name of the REIT has changed to Sabana Industrial REIT, from Sabana Shariah Compliant Industrial REIT, after the completion of removing the Shariah compliance requirement.