IslamicFinance.de

Sabana Shariah Compliant REIT released its fiscal third-quarter earnings yesterday. The REIT’s portfolio currently consists of 21 industrial properties in Singapore. Gross revenue was S$23.0 million in the reporting quarter, down 9.7% compared to the previous year. Net property income declined 24% to S$13.9 million during the same period, mainly due to higher operating expenses. As a result, the REIT’s distribution per unit for the quarter also tumbled by 32.2% to 1.20 cents based on a unit count of 739.8 million units. At the end of the reporting quarter, the REIT had a net asset value per unit of S$0.81, down 23.6% from the S$1.06 seen a year ago. According to manager Kevin Xayaraj, industrial rents are expected to be under pressure with the onset of the softening demand and high supply of industrial space in the market. Market conditions are exptected to remain challenging.