Sabana Reit overall portfolio occupancy up 78.8% in Q3

As at end-September, its portfolio had a weighted average lease expiry of 2.6 years, down from 2.7 years in the previous quarter

SABANA Real Estate Investment Trust (Reit) on Friday (Oct 18) reported an increase in overall portfolio occupancy to 84.9 per cent for the third quarter ended Sep 30, 2024, up from 78.8 per cent in the previous quarter.

The improvement was attributed to the signing of new leases covering 313,953 square feet (sq ft) and the renewal of 15,974 sq ft of leases, the Reit’s manager said in an evening bourse filing.

As at end-September, Sabana’s portfolio had a weighted average lease expiry of 2.6 years, down from 2.7 years in the previous quarter.

Aggregate leverage stood at 37 per cent with an interest coverage ratio of 3.2 times.

Total borrowings stood at S$353 million as at end-September, up from S$340 million in end-June and S$318 million in end-2023.

In Q3, Sabana also took steps to address earlier disruptions caused by the repossession of two master-tenanted properties.

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As part of its strategy, the trust has moved from a master tenancy to an anchor tenancy model, said Donald Han, CEO of the Reit’s manager.

“To this end, we have filled up approximately 74 per cent of the net lettable area at 33, 33A and 35 Penjuru Lane with two anchor tenants,” he added.

“We are concurrently carrying out a property reconfiguration initiative at 30 and 32 Tuas Avenue 8 to allow maximum leasing flexibility from early next year.”

Units of Sabana Reit closed unchanged at S$0.385 on Friday, following the lifting of a trading halt.