Activist fund calls for merger of Sabana Reit, ESR Reit

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Due to Sabana Reit's low aggregate leverage of 30.8 per cent, the combined entity will also have around S$180 million of debt headroom to make DPU-accretive acquisitions, Quarz wrote.

Meanwhile, if Sabana Reit can bring its portfolio occupancy rate up to the national level of 89 per cent from 80.6 per cent as at Sept 30, that could generate around S$3.4 million of additional net property income, Quarz added. Sabana Reit units were trading up 0.5 Singapore cent or 1.1 per cent at 45.5 cents as at 9.11am on Thursday morning, while ESR Reit was flat at S$0.52.

 

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