Alpha Integrated Reit H2 DPU rises 20.4% to S$0.0183 on higher rent, occupancy

[SINGAPORE] Alpha Integrated Reit (AI-Reit), formerly known as Sabana Reit, posted a distribution per unit (DPU) of S$0.0183 for the half-year ended Dec 31, 2025, up 20.4 per cent from S$0.0152 in the year-ago period.

The increase came even as the manager claimed capital allowances of about S$4.1 million to retain monies to pay for part of the internalisation cost, it said in a bourse filing on Friday (Feb 13).

The internalisation of the Reit manager was fully completed in the second half of 2025.

Karen Lee, CEO of the Reit’s manager, said: “This robust performance is a testament to the resilient fundamentals of AI-Reit’s portfolio and the effective execution by the new team, which has significantly strengthened leasing momentum since coming on board.”

For FY2025, S$1.7 million of expenses were incurred and accrued in respect of the implementation of the resolutions passed to effect the internalisation.

Mindarie Investment, a wholly owned subsidiary of Swiss-based Volare Group, in December last year launched a mandatory conditional cash offer for all issued and outstanding units of the Reit at S$0.48 per unit.

The offer turned unconditional on Feb 9, after the receipt of valid acceptances for about 111.8 million units, representing about 9.9 per cent of the total issued units.

Volare intends to maintain the listing status of AI-Reit on the Singapore Exchange. It said there are no plans for material changes to the Reit’s business, to redeploy fixed assets, make major changes to investment policy, or end the employment of existing employees.

Revenue for H2 2025 rose 4.5 per cent year on year to S$60.7 million, from S$58.1 million previously, lifted by positive rental reversions in the Reit’s portfolio, as well as an overall increase in occupancy rate.

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Net property income (NPI) grew 12.9 per cent year on year for the half-year to S$34.2 million, from S$30.3 million. The rise was mainly attributed to the uplift in rental reversions and higher portfolio occupancy.

“A positive average rental reversion of 11.8 per cent was achieved for leases that were renewed in FY2025,” the manager said, noting that it had also secured renewals for more than 45 per cent of leases expiring in FY2026.

Total income available for distribution in H2 2025 (adjusted) came in at S$22.7 million, up 20.8 per cent from S$18.9 million in the corresponding year-ago period.

The second half’s results bring the DPU declared for FY2025 to S$0.0353, a 23.4 per cent increase from S$0.0286 in FY2024.

For the full year, income available for distribution (adjusted) was up 23.2 per cent at S$43.8 million.

The Reit’s revenue was S$120.1 million in the 2025 financial year – up 6.0 per cent year on year.

Its NPI was S$67.7 million, up 17.9 per cent from the year-ago period.

Overall portfolio occupancy rate improved to 90.3 per cent as at Dec 31, from 85 per cent the year before, mainly due to the successful leasing of 30/32 Tuas Avenue 8, which had been previously vacant for more than 1.5 years.

Outlook

Singapore’s economic growth is expected to be 2 to 4 per cent in 2026, the manager noted, citing forecasts from the Ministry of Trade and Industry.

Citing research from Cushman & Wakefield, it noted that industrial rents are expected to record “steady but modest growth” of up to 2 per cent year on year in 2026.

However, about a million square metres of new industrial space is estimated to be completed in 2026, contributing to the supply pipeline.

The manager said the Reit remains focused on maintaining operational stability and positioning the platform for longer-term value creation.

However, it noted that the Reit will “continue to remain mindful of prevailing market conditions, cost pressures and macroeconomic uncertainties”.

Units of Alpha Integrated Reit closed flat at S$0.485 on Thursday (Feb 12).