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SABANA SHARI’AH COMPLIANT REIT
8
Letter from Chairman & CEO
Dear Unitholders
We launched the initial public offering (“IPO”) of Sabana Shari’ah Compliant REIT on
a promise—to manage our assets well and create value for our investors. Based on our
inaugural results, we are pleased to say we have achieved both.
Mr Kevin Xayaraj
Co-founder,
Chief Executive Offcer
and Executive Director
Performing Above Expectations
For the financial period ended 31 December 2011
(“FY2011”), Sabana Shari’ah Compliant REIT generated
S$76.9 million in gross revenue, 2.0% higher than our
forecast at IPO. Net property income (“NPI”) was S$73.1
million, 1.1% higher than the forecast NPI of S$72.3
million. Total net income available for distribution was
S$60.6 million, corresponding to annualised DPU of
8.67 cents for the period, 0.5% higher than forecast.
Better-than-expected results like these are a testament
to the teamwork and focus of everyone at Sabana
Shari’ah Compliant REIT.
Keeping Occupancy High
By working closely to understand and support the needs
of the master lessees, we achieved 100% occupancy
for 11 months at our 19 single-tenant properties. The
exception was November and December 2011, when
the master tenant of the property at 1 Tuas Ave 4
stopped paying rent, temporarily diluting the occupancy
rate to 96.0%. Nevertheless, the Manager sprang to
work and was already in the process of securing a new
tenant at the time of print.
We were also able to increase the total occupancy of
the portfolio’s only multi-tenanted property at 9 Tai Seng
Drive—raising it from 96.1% to 98.4% during the year.
Increasing Our Value
By the third quarter of 2011, Sabana Shari’ah Compliant
REIT’s initial portfolio (assembled in 2009-2010 during
sluggish market conditions) gained S$50.1 million in
value over its initial IPO valuation.
Mr Steven Lim Kok Hoong
Chairman and Independent
Non-executive Director
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