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ANNUAL REPORT 2011
15
Proactive Asset Management
Within Sabana Shari’ah Compliant REIT’s portfolio, 19 of
the 20 properties are under master lease arrangements.
The Manager has exhibited a keen ability to manage
and add value to the portfolio properties. For example,
through active marketing and leasing initiatives, the
Manager swiftly replaced outgoing tenants at the
portfol io’s multi-tenanted property at 9 Tai Seng
Drive. As a result, the fourth quarter of 2011 saw the
occupancy rate of the building increase from 96.1% in
the first quarter of 2011 to 98.4%. Overall, a positive
rent revision was achieved by the team at about 8.0%
for leases concluded, for both new and renewal tenants.
In another instance, the original master tenant at Sabana
Shari’ah Compliant REIT’s portfolio property at 1 Tuas
Ave 4 stopped paying rent in November and December
2011. Despite a cautions business environment, the
Manager quickly found a replacement tenant and was
at the final stages of concluding the lease at the time
of print.
Additionally, the Manager is actively engaging the
master tenants whose leases are expiring in 2013.
This may require conversion of certain properties into
multi-tenanted buildings. The Manager is working on
early lease renewal with current tenants and is making
frequent site visits to understand tenant requirements.
Outlook
Moving forward, the Manager will continue its proactive
leasing initiatives, including encouraging early lease
renewals, leveraging on our extensive network and
reaching out to new tenants and constant engagement
with existing tenants for new opportunities. The Manager
will also continue to seek yield-accretive acquisitions.
Most importantly, the Manager is well-prepared and has
the proven hands-on experience to actively manage its
portfolio for future growth.
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