Sabana REIT DPU falls 24.3% to 81 cents

Poor performance from properties cut its income by 2.9%.

Sabana REIT is grappling with lower gains after it reported a 7.4% drop in net property income (NPI) for this year's Q2. The company's distribution per unit (DPU) also crashed by 24.3% to 81 S cents.

According to Sabana REIT's financial statement, company gross revenue fell by 2.9% to $22.0m for the second quarter this year.

Lower contribution from its five multi-tenant properties and the conversion of 39 Ubi Road 1 to multi-tenant lease arrangements in Q4 last year pushed the REIT's income down, the company said.

The company also had to increase its property expenses by 4.5% from last quarter due to higher maintenance expenses and higher impairment losses for properties in 6 Woodlands Loop.

The income decline was offset by lower operating expenses from its other multi-tenant and non-triple-net master tenant properties.

Sabana REIT currently has 21 properties mainly in the industrial sector.