3Q 2020 Interim Business Update - Sabana Shari'ah Compliant Industrial REIT 30 October 2020 - SGX
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Sabana Shari’ah Compliant Industrial REIT
30 October 2020
3Q 2020
Interim
Business 1Q 2020 Interim Business Updates
Update
1Q 2020 Interim Business Update
3Q 2020 Interim Business Update
CEO’s Message
“ Market outlook amidst COVID-19…
According to Knight Frank Research, leasing volume for industrial space declined more than a third in the past
quarter(1), and Sabana has not been immune to the pandemic’s impact. The global economy still remains
challenged today, with the Singapore government expecting more job losses in the coming months.
Leasing update…
We signed close to 900,000 sq ft in leases having improved our portfolio occupancy while continuing to achieve
positive rental reversion. However, going into 2021, COVID-19 will continue to be a challenge.
AEI Update…
The new mall is named NTP+. Phase 1 and 2 of our asset enhancement initiative (“AEI”) at New Tech Park (“NTP”)
will TOP in 1Q 2021, barring unforeseen circumstances. Rental contributions are expected to start from 2Q 2021
onwards. More than 50.0% of the retail units available at NTP+ (approx. 42.0% of Phase 1 NLA) have been leased,
to a mix of established and ‘new-to-the-market’ retail and F&B tenants.
~Mr. Donald Han, CEO of Sabana REIT Manager
“
(1) Singapore Industrial Market Q3 2020. Knight Frank. Retrieved 15 October 2020.
2
1Q 2020 Interim Business Update
3Q 2020 Interim Business Update
Key Quarterly Highlights
▪ Signed 304,622 sq ft of new leases
▪ Renewed 586,043 sq ft post-circuit breaker
• Renewed 58.0% of leases (by GRI) expiring in FY 2020
▪ Portfolio occupancy increased to 80.2%, up from 77.3% as at 30 June 2020
▪ Progress on New Tech Park AEI: New mall to be named “NTP+” with exciting tenant mix signed on
• More than 50.0% of the retail units available have been leased under Phase 1
• Tenants include Collins, Wine Connection and Dutch Colony Coffee
• New mall to be Green Mark Certified by Building & Construction Authority
Portfolio and Operational Updates as at 30 September 2020
WALE
Portfolio Rental
New Renewed
occupancy WALE Reversion
2.7 years 10.6% (3Q 2020)
Leases Leases
80.2% 304,622 sq ft 586,043 sq ft
6.0% (YTD)
3
1Q 2020 Interim Business Update
3Q 2020 Interim Business Update
Key Capital Management Indicators
Capital Management Update Debt maturity profile as at 30 September 2020
As at 30 September 2020
200
Borrowings (S$ million) 282.7 150.5
150 111.2
S$ million
Weighted average tenor of borrowings 50.5
1.4 7.0
(years) 100
21.0
Average all-in financing costs (%) 3.2 50 100.0 104.2
1.0
20.0
Aggregate leverage(1) (%) 33.4 0
2021 2022 2023
Proportion of borrowings on fixed
53.1 Terms loans * Revolving facilities *
rates (%)
No refinancing requirements till 2021
(1) Ratio of total borrowings & deferred payment over deposited property as defined in the Property Funds Appendix of the Code on Collective Investment Schemes.
* All borrowings are on secured basis.
4
3Q 2020 Interim Business Update
Portfolio Performance as at 30 September 2020
Breakdown of Asset Types
Occupancy rates
By Gross Rental Income 100%
76.8% 75.4% 77.0%
72.7%
77.3% 76.8% 80.2%
80% 72.3%
10.1%
High-Tech Industrial
60%
25.2% Chemical Warehouse &
40%
55.0% Logistics
Warehouse & Logistics 20%
9.7% General Industrial 0%
4Q 2019 1Q 2020 2Q 2020 3Q 2020
Multi-tenanted Portfolio
Breakdown of Master-leased and 30%
Multi-tenanted Properties 25% Lease Expiry by Gross Rental Income
By Gross Rental Income
20%
15%
23.0% 19.2%
Master Lease 13.1%
6.5% 15.7%
10%
16.3%
Multi-tenant 5% 8.3% 6.2%
6.3%
3.8% 3.5%
0% 1.1%
77.0% 2020 2021 2022 2023 2024 Beyond 2024
Master Lease Multi-tenanted
53Q 2020 Interim Business Update
Other Corporate Updates
Progress on New Tech Park AEI:
Update on COVID-19: Supporting our tenants
New mall to be named “NTP+”
AEI slated for TOP ▪ The Manager continued to work closely with tenants to
in 1Q 2021 render our assistance including:
• New external façade • Government rental reliefs will be passed on to tenants by 4Q
taking shape after 2020;
resumption of • to assess and provide additional rental relief to eligible
construction works tenants by 4Q 2020; and
post-circuit breaker • working with tenants to right-size their space.
Rental contributions
are expected to start ▪ Continued to implement preventive and social distancing
from 2Q 2021 onwards measures at all our properties.
Phase 1
▪ More than 50.0% of the retail units available (approx.
42.0% of Phase 1 NLA) have been leased
• Already signed on a mix of tenants that includes Collins,
Wine Connection, Dutch Colony Coffee, and other ‘new to
the market‘ F&B / retail concepts
Phase 2
▪ 100.0% of available food court space are under
negotiations 6Sabana Real Estate Investment Management Pte. Ltd.
(Company registration no: 201005493K, Capital markets services licence no:
CMS100169)
151 Lorong Chuan #02-03 New Tech Park Singapore 556741
Tel: +65 6580 7750
Fax: +65 6280 4700
Contact Us www.sabana-reit.com
For enquiries, please contact:
Ms Dianne Tan
Sabana Real Estate Investment Management Pte. Ltd.
Tel: +65 6580 7857
Email: dianne.tan@sabana.com.sg
Ms Hoong Huifang
WATATAWA Consulting
Tel: +65 9128 0762
Email: hhoong@we-watatawa.com
Important Notice
Disclaimer
You are cautioned not to place undue reliance on the information contained in this document as it is for your information only and does not
have regard to your specific investment objectives, financial situation or your particular needs. Nothing herein shall be construed as
investment or financial advice nor constitute an offer or invitation to invest in Sabana REIT or any investment or product of or to subscribe to
any services offered by the Manager, the Trustee or any of their affiliates.
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