The income available for distribution was reduced mainly due to the increased financing costs on the back of higher borrowings and borrowing costs, as well as an enlarged unit base following the distribution reinvestment plan.
The declared DPU was also impacted by the Manager’s retention of approximately 10% of the total income available for distribution for prudent capital management in view of the costs incurred and to be incurred in connection with the internalisation. Sabana REIT's manager announced a 16.8% y-o-y decline in distributions per unit to 1.34 cents for the six months to June 30.
The ESR Entities have filed an appeal against the High Court’s decision in the Order 32 Application, and the hearing has been fixed on July 25. Following the hearing, the Trustee will consider the outcome of the ESR Appeal with its advisors in light of ongoing developments in respect of the internalisation process and the anticipated timeline.
Notably, Quarz has to bear 30% of the costs for Order 32.
See also: Stoneweg: New sponsor, new chapter
