SABANA Shari’ah Compliant Industrial Real Estate Investment Trust’s (Sabana Reit) distribution per unit (DPU) fell 65.7 percent to 0.47 Singapore cent for the half year finished June 30, 2020 from 1.37 Singapore cents a year back.
Considering the developing Covid-19 situation, the chief has chosen to briefly hold 55 percent of its H1 2020 distributable salary to conserve capital, which will be paid out sometime in the future, it said. Had this sum been incorporated, DPU would have been 1.05 Singapore cents.
“The a large portion of year’s DPU must also be seen against the higher base in H1 2019 that incorporated a one-time capital gains distribution of S$1.24 million or 0.12 cent,” the administrator said in a regulatory recording on Thursday morning.
Gross income was down 6.7 percent to S$34.3 million for the half year, from S$36.7 million every year back. This was basically owing to bring down normal occupancies at specific properties and the expiry and end of master leases at 3A Joo Koon Circle and 10 Changi South Street 2, the director added.Net property pay fell 15.5 percent on the year to S$20.9 million for the half year time frame, from S$24.7 million. This was because of lower income, as well as a one-time provision for rental waiver and allowances for weakness losses on exchange receivables, that were made for specific tenants out of reasonability, said the manager.Distributable pay sank 23.3 percent year on year to S$11.1 million, from S$14.5 million, while total distributable salary proclaimed to unitholders for the period tumbled 65.5 percent to S$5 million from a year sooner.
The distribution will be paid out on Aug 28, after books closure on July 24.
Looking forward, Sabana Reit expects to confront pressure on its earnings for the rest of the year.
Units in Sabana Reit closed level at S$0.36 on Wednesday. The trust requested an exchanging stop on Thursday morning, before its results release, and the declaration of a possible merger with ESR-Reit.