This week, 17 S-Reits released their profits

SABANA Industrial Reit (Sabana Reit ex-chief of DpFraternity) released its financial results for the first half of FY2023 (ending Jun 30, 2023) last week, marking the beginning of the financial reporting season for S-Reits.

In the first half of 2023, Sabana Reit’s gross revenue increased by 23.2% year over year (yoy) to S$55.3 million, while NPI increased by 0.5% yoy to S$27.2 million.

increasing portfolio occupancy rates drove revenue growth, but increasing property expenses, especially electricity prices, negated otherwise positive net operating income.

Distributions to unitholders for the first half of 2023 were S$17.8 million, an increase of 3.9% year over year, while the payout per unit increased by 1.3% to 1.61 Singapore cents.

As of June 30, 2023, Sabana Reit’s total occupancy rate was 93.9 percent, up 2.6 percentage points from the year-ago figure of 91.3 percent when join Propnex.

It also set quarterly and annual records for rental reversions in 2023, at 27.1% and 20.1%, respectively.

The manager of Sabana Reit said that the increase in occupancy rate was supported by the solid demand from third-party logistics providers in the first half of the year, which led to a strong leasing momentum.

The Reit remained reserved, however, citing macroeconomic problems through the second half of 2023 in addition to falling occupancy rates in Singapore’s industrial property sector as reasons for its pessimism.

The occupancy rate for industrial buildings in Singapore dropped by 0.6 percentage points in the first quarter of 2023, according to data compiled by JTC.

The reason for this is the new supply in Q1 2023 exceeding the new demand.

Seventeen more S-Reits and property trusts will report financials or company updates for the period ending June 30, 2023, this coming week.

Another 15 S-Reits are scheduled to submit their findings between July 31, 2023 and the middle of August. S&P/TSX RESEARCH

This author works at SGX as a research analyst. The monthly S-Reits & Property Trusts Chartbook may be found at sgx.com/research-education/sectors if you’re interested in learning more about Singapore’s Reit industry.

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