Sabana Industrial Real Estate Investment Trust (REIT) has reported a robust performance for the first quarter of 2025, achieving positive double-digit rental reversion. This success comes amid a challenging economic environment, as Singapore’s Ministry of Trade and Industry has downgraded the country’s growth forecast to between 0.0% and 2.0% due to global trade tensions and US-China tariff wars.
The REIT’s CEO, Donald Han, highlighted the resilience of their portfolio and the continued demand from tenants across diverse trade sectors. “Our operational performance underscores the REIT’s portfolio resilience and continued demand among our existing tenants,” Han stated. The REIT’s occupancy rate has improved significantly, rising from 78.8% in Q2 2024 to 86.4% in Q1 2025.
Looking forward, the REIT anticipates challenges due to economic uncertainties and potential US tariffs. However, the management is focused on optimising portfolio occupancy and stabilising service charges to attract and retain tenants. The successful implementation of solar initiatives is expected to yield cost savings, further supporting these efforts.
The REIT is also enhancing tenant engagement by initiating discussions 12 months before lease expiries, compared to the previous six to nine months. This proactive approach aims to maintain competitive rents and adapt to market changes effectively.
As Sabana Industrial REIT navigates these economic challenges, its strategic initiatives and strong performance in Q1 2025 position it well for the remainder of the year.
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