It seem like the ongoing bitter battle between the managers of Sabana Shariah-compliant Reit and some disgruntled investors will come to a head at an extraordinary general meeting End of April which has been called at the behest of 66 unit holders who began a campaign against Sabana Real Estate Investment Management.
Reason was dissatisfaction with the Reit manager's lacklustre performance and 3 years of falling distributions per unit. At the EGM 4 resolutions will be tabled one of which ask for Sabana Real Estate Investment Management to be removed.
Sabana Shariah Compliant REIT (SGX: M1GU) had released its fiscal first-quarter earnings yesterday evening. The real estate investment trust is sponsored by the small conglomerate Vibrant Group Ltd (SGX: F01). Currently, Sabana REIT owns a portfolio of 23 properties in Singapore, with assets worth a collective S$1.3 billion. Sabana REIT had achieved revenue of S$25.4 million in its fiscal first-quarter (three months ended 31 March 2015), a slight 3.2% year-on-year increase. However, its net property income only managed to grow by 1.1% from a year ago to S$18.6 million as a result of much higher property expenses. Besides, Sabana REIT’s net asset value per unit has decreased slightly to S$1.06 as at 31 March 2015 from S$1.09 a year ago.