[SINGAPORE] Sabana Industrial Reit (Sabana) kicked off the current earnings release season for S-Reits on Apr 15 with the release of its Q1 2025 financial results. This was followed by Keppel DC Reit and Keppel Pacific Oak US Reit both reporting Q1 2025 business updates on Apr 17.
Another 26 S-Reits have also confirmed that they will unveil financial results or business updates between Apr 22 and May 7 for their respective periods ended Mar 31 2025. Among them, three will report full-year financial results, three will report first-half or third-quarter financial results, and another 20 will provide quarterly business updates.
Sabana reported 26.5 per cent year-on-year growth in Q1 2025 income available for distribution per unit (DPU), led by a 22 per cent growth in net property income (NPI) and 4.6 per cent growth in gross revenue. Earnings uplift was due to higher occupancy at the majority of its multi-tenanted portfolio, particularly at Sabana@1TA4 and 33, 33A and 35 Penjuru Lane, which saw the highest increases.
Portfolio occupancy for Sabana improved from 85 per cent at the end of last year to 86.4 per cent as at Mar 31 2025. Specifically, the occupancy rate of 33, 33A and 35 Penjuru Lane rose to 86.3 per cent, an improvement from 73.7 per cent at the end of last year. Sabana achieved a high tenant retention rate of 99.7 per cent in Q1 2025, and all leases expiring in FY2025 have been activated for renewal and negotiations. Sabana continues to achieve double-digit rental reversion of 15.3 per cent for Q1 2025, following four consecutive years of positive double-digit rental reversion since FY2021.
Keppel DC Reit reported 14.2 per cent year-on-year growth in DPU, mainly due to contributions from acquisitions of Keppel DC Singapore 7 and 8 and Tokyo Data Centre 1, as well as higher contributions from contract renewals and escalations in 2024. Keppel DC Reit’s NPI and gross revenue grew 24.1 per cent and 22.6 per cent year on year, respectively.
Keppel DC Reit continues to see acquisitions as a parallel growth driver, with target markets including Japan, South Korea and Europe. Its assets under management have grown approximately five times to S$5 billion over the past 10 years since its listing.
Keppel Pacific Oak US Reit posted a 19.3 per cent year-on-year decline in income available for distribution, mainly due to a 6.5 per cent decline in adjusted NPI, as a result of lower rental income from higher free rents due to timing differences in leases completed for the respective periods.
Keppel Pacific Oak US Reit has an occupancy rate of 89.1 per cent as at Mar 31, 2025, slightly lower than the 90 per cent recorded at the end of last year. However, its historical occupancy since 2019 remains higher than the US average and US gateway cities at 86 per cent and 83.4 per cent, respectively, as at Mar 31, 2025. Keppel Pacific Oak US Reit continues to remain focused on the fast-growing TAMI (Technology, Advertising, Media, and Information), medical and healthcare sectors across the key growth markets in the US. SGX RESEARCH
The writer is a research analyst at SGX. For more research and information on Singapore’s Reit sector, visit sgx.com/research-education/sectors for the S-Reits & Property Trusts Chartbook.
