Basic Profile & Key Statistics
Key Indicators
The performance indicators are crucial for understanding the health and potential of any financial entity. By closely examining these numbers, one can gauge future stability and growth.
Performance Highlight
In terms of performance, there is noticeable improvement year over year in both gross revenue and Net Property Income (NPI). This growth is attributed largely to favorable rental reversions throughout the portfolio. The increase in total income available for distribution has been driven by the heightened NPI and reduced internalization expenses, although this is somewhat counterbalanced by increased finance costs. In another positive development, the total distribution declared has increased due to a lower retention rate than that of the previous year.
Rental Reversion
For the third and fourth quarters, rental reversions were recorded at 9.7% and 27.1%, respectively. Impressively, Sabana has maintained a streak of positive rental reversions for 16 consecutive quarters.
Asset Enhancement Initiative
Several Asset Enhancement Initiatives (AEIs) are currently underway across the portfolio, which could signify enhanced performance and tenant satisfaction in the future.
Related Parties Shareholding
- REIT Sponsor’s Shareholding: This is currently in a less favorable standing.
- REIT Manager’s Shareholding: Also rated as less favorable.
- Directors of REIT Manager’s Shareholding: Similarly, this remains less favorable.
Lease Profile
The lease profile reveals several challenges:
- Occupancy: Viewed as less favorable, suggesting room for improvement.
- Weighted Average Lease Expiry (WALE): Also less favorable, indicating that lease durations could be optimized.
- Highest Lease Expiry in 4 Years: Another challenge, considered less favorable.
- Weighted Average Land Lease Expiry: Currently not in an ideal position.
Debt Profile
The debt outlook offers some balance across key metrics:
- Gearing Ratio: Positioned at a moderate level, indicating prudence in financial leverage.
- Cost of Debt: Also moderate, suggesting an ability to manage borrowing costs effectively.
- Fixed Rate Debt %: Assessed as moderate, meaning there’s a balance between fixed and variable rates.
- Unsecured Debt %: Favorable, indicating robust financial flexibility.
- Weighted Average Debt Maturity (WADM): This metric is considered less moderate, highlighting an area for potential enhancement.
Overall, while there are notably strong points in performance and strategy execution, certain areas such as lease profile and related party investment require attention to optimize future results.
