SABANA Shari'ah Compliant Industrial Real Estate Investment Trust's distribution per unit fell 65.7 per cent to 0.47 Singapore cent for the half year ended June 30, 2020 from 1.37 Singapore cents a year ago.
In view of the evolving Covid-19 situation, the manager has decided to temporarily retain 55 per cent of its H1 2020 distributable income to conserve capital, it said. Had this amount been included, DPU would have been 1.05 Singapore cents. "The half year's DPU must also be seen against the higher base in H1 2019 that included a one-time capital gains distribution of S$1.24 million or 0.12 cent," the manager said in a regulatory filing on Thursday morning.
Gross revenue was down 6.7 per cent to S$34.3 million for the half year, from S$36.7 million a year ago. This was mainly attributable to lower average occupancies at certain properties and the expiry and termination of master leases at 3A Joo Koon Circle and 10 Changi South Street 2, the manager added.
Net property income fell 15.5 per cent on the year to S$20.9 million for the six-month period, from S$24.7 million. This was due to lower revenue, as well as a one-time provision for rental waiver and allowances for impairment losses on trade receivables, that were made for certain tenants out of prudence, said the manager.