FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT...

SABANA SHARI’AH COMPLIANT REIT FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR SECOND QUARTER FROM 1 APRIL 2012 TO 30 JUNE 2012 AND FIRST HALF FROM 1 JANUARY 2012 TO 30 JUNE 2012

INTRODUCTION

Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (“Sabana Shari’ah Compliant REIT” or “Trust”) is a real estate investment trust constituted on 29 October 2010 (as amended) under the laws of

Singapore by the Trust Deed entered between Sabana Real Estate Investment Management Pte. Ltd. as the Manager (the “Manager”) and HSBC Institutional Trust Services (Singapore) as the Trustee.

Sabana Shari’ah Compliant REIT was established principally to invest in income-producing real estate used for industrial purposes in Asia, as well as real estate-related assets, in line with Shari’ah investment principles. Sabana Shari’ah Compliant REIT was a dormant private trust from the date of constitution until the initial 15 properties (the “Initial Properties”) were acquired on 26 November 2010 (the “Listing Date”) and officially listed on the same day on the Singapore Exchange Securities Trading Limited (“SGX-ST”).

The current property portfolio of Sabana Shari’ah Compliant REIT comprises the Initial Properties as well as 5 industrial properties acquired in the quarter ended 31 December 2011 (“4Q 2011”) (the “New Properties”) (collectively, the “Properties”). The yield-accretive acquisitions of the New Properties are in line with the

Manager’s strategy to generate stable and growing returns to Unitholders. The Properties are as follows: 1. 151 Lorong Chuan, Singapore 556741 2. 8 Commonwealth Lane, Singapore 149555 3. 9 Tai Seng Drive, Geo-Tele Centre, Singapore 535227 4. 200 Pandan Loop, Pantech 21, Singapore 128388 5. 15 Jalan Kilang Barat, Frontech Centre, Singapore 159357 6. 33 & 35 Penjuru Lane, Freight Links Express Logisticpark, Singapore 609200/609202 7. 18 Gul Drive, Singapore 629468 8. 1 Tuas Avenue 4, Singapore 639382 9. 34 Penjuru Lane, Penjuru Logistics Hub, Singapore 609201 10. 51 Penjuru Road, Freight Links Express Logisticentre, Singapore 609143 11. 26 Loyang Drive, Singapore 508970 12. 3 Kallang Way 2A, Fong Tat Building, Singapore 347493 13. 218 Pandan Loop, Singapore 128408 14. 123 Genting Lane, Yenom Industrial Building, Singapore 349574 15. 30 & 32 Tuas Avenue 8, Singapore 639246/639247 16. 3A Joo Koon Circle, Singapore 629033 17. 2 Toh Tuck Link, Singapore 596225 18. 21 Joo Koon Crescent, Singapore 629026 19. 39 Ubi Road 1, Singapore 408695 20. 6 Woodlands Loop, Singapore 738346 The Manager’s key objective is to provide Unitholders of Sabana Shari’ah Compliant REIT with regular and stable distributions and long-term growth in distribution per Unit and net asset value per Unit, while maintaining an appropriate capital structure. On 21 October 2011, Sabana Shari’ah Compliant REIT incorporated a wholly-owned subsidiary, Sabana Treasury Pte. Ltd (“STPL”). The principal activity of STPL is the provision of treasury services.

The financial information of Sabana Shari’ah Compliant REIT and its subsidiary (the “Group”) for the quarter ended 30 June 2012 (“2Q 2012”) as set out in this announcement have been extracted from the interim financial

information for 2Q 2012 which have been reviewed by our auditors in accordance with Singapore Standard on Review Engagements 2410. Unless otherwise stated, all capitalised terms used in this announcement shall have the same meaning as in the Prospectus dated 22 November 2010 (the “Prospectus”).

Note # - As disclosed in the Prospectus, the SGX-ST has granted Sabana Shari’ah Compliant REIT a waiver from the requirement to prepare historical pro forma financial statements. Where appropriate throughout this announcement, comparisons are made against the pro-rated forecast figures for the Projection Year 2012 (the “Projection”) as disclosed in the Prospectus.


Sabana Shari’ah Compliant REIT was a dormant private trust from 29 October 2010 (date of constitution) until the Initial Properties were acquired on 26 November 2010 and officially listed on the same day on SGX-ST. Consequently, the operations of Sabana Shari’ah Compliant REIT commenced from 26 November 2010. The first half figures are not comparable as the Trust’s operations for year to date is from 1 January 2012 to 30 June 2012 (“Current YTD”), whereas, the comparatives are from 26 November 2010 to 30 June 2011 (“Prior YTD”).

The incorporation of a subsidiary, Sabana Treasury Pte. Ltd., took place on 21 October 2011. As such, the comparative figures for the quarter ended 30 June 2011 (“2Q 2011”) and Prior YTD relate solely to the financial

figures of the Trust.


SUMMARY OF RESULTS FOR SABANA SHARI’AH COMPLIANT INDUSTRIAL REIT Group and Trust

Quarter Fav / (Unfav)

YTD Fav / (Unfav) 2Q 2012 2Q 2011 30/06/12 30/06/11

#

S$'000 S$'000 % S$'000 S$'000 %

Gross revenue 20,346 17,384 17.0 39,997 41,480 (3.6) Net property income 19,075 16,542 15.3 37,571 39,520 (4.9)

Income available for distribution 14,501 13,849 4.7 28,954 33,157 (12.7)

Distribution per unit ("DPU") (cents) (a)

2.27 2.18 4.1 4.53 5.22 (13.2) Annualised DPU (cents) 9.13 8.74 4.5 9.11 8.78 3.8

Notes:

(a) Please refer to Item 6 on Page 10 for the DPU computation.


1(a) Statements of Total Return and Distribution Statement

Group and Trust

Statements of Total Return Quarter Fav / (Unfav)

YTD Fav / (Unfav)

2Q 2012 2Q 2011 30/06/12 30/06/11

#

S$'000 S$'000 % S$'000 S$'000 %

Gross revenue (a)

20,346 17,384 17.0 39,997 41,480 (3.6)

Property expenses (b)

(1,271) (842) (51.0) (2,426) (1,960) (23.8)

Net property income 19,075 16,542 15.3 37,571 39,520 (4.9) Finance income 51 36 41.7 106 55 92.7 Finance costs (4,018) (2,616) (53.6) (8,039) (6,189) (29.9)

Net financing costs (c)

(3,967) (2,580) (53.8) (7,933) (6,134) (29.3) Amortisation of intangible assets (366) (330) (10.9) (682) (781) 12.7 Manager’s fees (1,339) (1,105) (21.2) (2,680) (2,646) (1.3) Trustee’s fees (107) (87) (23.0) (220) (213) (3.3) Donation of non-Shari’ah compliant

income (d)

(39) (42) 7.1 (78) (89) 12.4

Other trust expenses (503) (124) (305.6) (810) (287) (182.2)

Net income 12,754 12,274 3.9 25,168 29,370 (14.3) Net change in fair value of financial

derivatives (e)

193 (1,643) 111.7 (300) (3,726) 91.9

Net change in fair value of investment properties

(f)

- - NM - (9,929) NM

Total return for the period before taxation

12,947 10,631 21.8 24,868 15,715 58.2

Income tax expense - - NM - - NM

Total return for the period after taxation

12,947 10,631 21.8 24,868 15,715 58.2

Group and Trust

Distribution Statements Quarter Fav / (Unfav)

YTD Fav / (Unfav) 2Q 2012 2Q 2011 30/06/12 30/06/11

#

S$'000 S$'000 % S$'000 S$'000 %

Total return for the period after

taxation 12,947 10,631 21.8 24,868 15,715 58.2

Non-tax deductible/(chargeable) items: Manager’s fees paid/payable in units 1,071 884 21.2 2,144 2,117 1.3 Amortisation of intangible assets 366 330 10.9 682 781 (12.7) Amortisation of transaction costs

(g) 574 410 40.0 1,142 1,024 11.5

Trustee’s fees 107 87 23.0 220 213 3.3 Donation of non-Shari’ah compliant

income 39 42 (7.1) 78 89 (12.4)

Net change in fair value of financial derivatives

(193) 1,643 (111.7) 300 3,726 (91.9)

Net change in fair value of investment properties

- - NM - 9,929 (100.0)

Effects of recognising rental income on a straight line basis over the lease term

(821) (248) (231.4) (969) (592) (63.7)

Other items 411 70 487.1 489 155 215.5

Net effect of non-tax deductible / (chargeable) items

1,554 3,218 (51.7) 4,086 17,442 (76.6)

Income available for distribution to Unitholders for the period

14,501 13,849 4.7 28,954 33,157 (12.7)

Notes:

(a) Gross revenue comprises rental income from the Properties. The acquisitions of the Initial Properties were completed on 26 November 2010 and consequently, the operations commenced from 26 November 2010. Sabana Shari’ah Compliant REIT was officially listed on the SGX-ST on the same day.

The acquisitions of the New Properties were completed in 4Q 2011. (b) Property expenses comprise of:

(i) Service, repairs and maintenance; (ii) Property and lease management fees; (iii) Property tax, land rent and utilities related to multi-tenanted property at 9 Tai Seng Drive; (iv) Property tax and land rent related to single-tenanted property at 6 Woodlands Loop; (v) Property tax and land rent related to master-tenanted property at 1 Tuas Avenue 4; and (vi) Other reimbursable expenses payable to Property Manager.


(c) Included in the net financing costs are the following:

Group and Trust


YTD Fav / (Unfav) 2Q 2012 2Q 2011 30/06/12 30/06/11

#

S$'000 S$'000 % S$'000 S$'000 %

Finance Income :

- Finance Income from Commodity Murabaha deposits

41 28 46.4 88 44 100.0

- Ta’widh (Compensation on late payment of rent)

10 8 25.0 18 11 63.6

51 36 41.7 106 55 92.7

Finance Costs: - Commodity Murabaha Facilities (2,653) (1,458) (82.0) (5,252) (3,529) (48.8) - Profit rate swaps (732) (708) (3.4) (1,527) (1,552) 1.6 - Amortisation of transaction costs

(g) (574) (410) (40.0) (1,142) (1,024) (11.5)

- Brokerage and agent fees (59) (40) (47.5) (118) (84) (40.5)

(4,018) (2,616) (53.6) (8,039) (6,189) (29.9)

Net financing costs (3,967) (2,580) (53.8) (7,933) (6,134) (29.3)

(d) This relates to the net income which was subjected to the cleansing process and was approved by the

Independent Shari’ah Committee to be/and donated to the following beneficiaries: Current YTD

• City College Holdings Ltd (1Q 2012); • Islamic Religious Council of Singapore for the sponsorship of the book “Keeping The Faith – Syed Isa

Semait Mufti Of Singapore 1972 - 2011” (2Q 2012); and • “Seeing is Believing”, a global initiative by Standard Chartered Bank to tackle avoidable blindness (2Q

2012). Prior YTD

• The Embassy of Japan for the relief and reconstruction efforts in Japan (1Q 2011); • The Straits Times School Pocket Money Fund (1Q 2011); • Islamic Religious Council of Singapore (2Q 2011); and • Singapore Kadayanallur Muslim League (2Q 2011). (e) Net change in fair value of financial derivatives relates to the fair value of the profit rate swaps based on

broker quotes recognised at the balance sheet date. (f) The costs of acquiring the Properties comprises the purchase consideration and any directly attributable

expenditure, for example acquisition fees and professional fees. Net change in fair value of investment properties relates to the difference in the costs of the investment

properties and its fair value. (g) Amortisation of transaction costs represents amortisation of upfront fees and legal fees pertaining to the

Commodity Murabaha Facilities (“CMF”). These items are non-tax deductible and have no impact on

income available for distribution.


1(b)(i) Statements of financial position, together with comparatives as at the end of the immediate preceding financial year

Group Trust

30/06/12 31/12/11 Change 30/06/12 31/12/11 Change

S$'000 S$'000 % S$'000 S$'000 %

Non-current assets

Investment properties 1,043,887 1,043,887 - 1,043,887 1,043,887 - Intangible assets

(a) 3,906 4,588 (14.9) 3,906 4,588 (14.9)

Subsidiary (b)

- - NM * * NM

Total non-current assets 1,047,793 1,048,475 (0.1) 1,047,793 1,048,475 (0.1)

Current assets Trade and other receivables

(c) 2,949 2,019 46.1 2,949 2,019 46.1

Cash and cash equivalents (d)

26,179 31,822 (17.7) 26,179 31,822 (17.7)

Total current assets 29,128 33,841 (13.9) 29,128 33,841 (13.9)

Total assets 1,076,921 1,082,316 (0.5) 1,076,921 1,082,316 (0.5)

Current liabilities

Trade and other payables (e)

13,235 15,562 (15.0) 13,235 15,562 (15.0) Borrowings

(f) 11,939 11,918 0.2 11,939 11,918 0.2

Total current liabilities 25,174 27,480 (8.4) 25,174 27,480 (8.4)

Non-current liabilities Trade and other payables

(e) 17,250 20,514 (15.9) 17,250 20,514 (15.9)

Borrowings (g)

349,067 347,947 0.3 349,067 347,947 0.3 Derivative liabilities

(h) 4,893 4,593 6.5 4,893 4,593 6.5

Total non-current liabilities 371,210 373,054 (0.5) 371,210 373,054 (0.5)

Total liabilities 396,384 400,534 (1.0) 396,384 400,534 (1.0)

Net assets 680,537 681,782 (0.2) 680,537 681,782 (0.2)

Represented by:

Unitholders’ funds (i)

680,537 681,782 (0.2) 680,537 681,782 (0.2)

* Less than S$1,000

Notes:

(a) This represents the unamortised rental support provided by the vendors of 9 Tai Seng Drive and 6 Woodlands Loop which can be drawn down over five years from the Listing Date and three years from 15 December 2011, being their respective acquisition dates. The decrease in intangible assets is mainly due to the amortisation of the rental support for the Current YTD.

(b) This relates to Sabana Treasury Pte. Ltd., a wholly-owned subsidiary of the Trust. (c) This relates to prepayments, deposits, trade and other receivables. The increase is mainly due to

accounting adjustment to recognise rental revenue on a straight-line basis over the term of the new master lease signed during the quarter.

(d) This relates to bank balances and islamic fixed deposits held with islamic financial institutions. The

decrease is due to and in line with the reduction in trade and other payables. (e) This relates to trade payables, security deposits, rental received in advance, retention sums and

accruals and provisions. The decrease is mainly due to recognition of Current YTD rental revenue received in advance that has been recognised as income earned, release of retention sums and utilisation of income support for Current YTD.

(f) This represents the amortised cost of the principal amount of S$12.0 million drawn from the Revolving

CMF to partially finance the acquisition of the investment properties. The increase is due to Current YTD amortisation of transaction costs incurred on the Revolving CMF and brokerage and agent fees using the effective profit rate method.


(g) This represents the amortised cost of the principal amount of S$352.8 million drawn from the Term CMFs to partially finance the acquisition of the investment properties. The increase is due to Current YTD amortisation of transaction costs incurred on the Term CMF and brokerage and agent fees using the effective profit rate method.

(h) Derivative liabilities relate to the fair value of the 2-year and 3-year profit-rate swaps to hedge the profit-

rate risks on S$352.8 million of the Term CMFs. The increase is due to the change in fair value of the this financial instrument for the Current YTD.

(i) Please refer to the Statement of Movements in Unitholders’ Funds under Item (1)(d)(i) on Page 9 for

details.

1 (b)(ii) Aggregate amount of borrowings and debt securities

Group and Trust

30/06/12 31/12/11

S$'000 S$'000

Commodity Murabaha Facilities

- Term (A, B & C) 352,837 352,837

- Revolving (D) 12,000 12,000

Less: Unamortised capitalised transaction costs

(3,831) (4,972)

361,006 359,865 Maturity of borrowings Current 11,939 11,918 Non-current 349,067 347,947

361,006 359,865

Details of borrowings and collaterals As at reporting date, Sabana Shari’ah Compliant REIT has drawn down the following facilities:- Term CMFs • S$320.8 million for a 3-year term (Facilities A and C) • S$32.0 million for a 2-year term (Facility B) Revolving CMF • S$12.0 million for a 2-year term (Facility D). The Term and Revolving CMFs are secured by, inter alia: (1) A first ranking legal mortgage over all the Initial Properties, 3A Joo Koon Circle, 2 Toh Tuck Link and 21

Joo Koon Crescent (collectively, the “Securitised Properties”), (or, where title to the Securitised Properties has not been issued, an assignment of building agreement coupled with a mortgage in escrow);

(2) Assignment of insurances, assignment of proceeds and assignment of Property Management

Agreements relating to the Securitised Properties; and (3) A fixed and floating charge over the other assets of Sabana Shari’ah Compliant REIT relating to the

Securitised Properties.


1 (c) Statement of Cash Flows

Group

Quarter YTD

2Q 2012 2Q 2011 30/06/12 30/06/11#

S$'000 S$'000 S$'000 S$'000

Cash flows from operating activities

Total return for the period after taxation and before distribution

12,947 10,631 24,868 15,715

Adjustments for: Amortisation of intangible assets 366 330 682 781 Manager’s fees paid/payable in units 1,071 884 2,144 2,117 Net change in fair value of financial derivatives (193) 1,643 300 3,726 Net change in fair value of investment properties - - - 9,929 Net financing costs 3,967 2,580 7,933 6,134

18,158 16,068 35,927 38,402 Change in trade and other receivables (856) (372) (930) (1,120) Change in trade and other payables (2,072) (1,009) (5,676) 30,665

Cash generated from operating activities 15,230 14,687 29,321 67,947

Ta’widh (Compensation on late payment of rent) received

10 8 18 11

Net cash from operating activities 15,240 14,695 29,339 67,958 Cash flows from investing activities Purchase of investment properties - - - (855,979) Intangible assets - - - (5,100) Finance income received from Commodity Murabaha

deposits 41 28 88 44

Net cash from / (used in) investing activities 41 28 88 (861,035)

Cash flows from financing activities Proceeds from issue of new units - - - 664,440 Proceeds from borrowings - - - 220,563 Issue expenses paid - - - (28,222) Transaction costs paid - - - (5,287) Financing costs paid (3,391) (2,070) (6,813) (4,247) Distribution paid (14,428) (19,277) (28,257) (19,277)

Net cash (used in) / from financing activities (17,819) (21,347) (35,070) 827,970 Net (decrease) / increase in cash and cash

equivalents (2,538) (6,624) (5,643) 34,893

Cash and cash equivalents at beginning of the period 28,717 41,517 31,822 -

Cash and cash equivalents at end of the period 26,179 34,893 26,179 34,893


1 (d)(i) Statements of Movement in Unitholders’ Funds

Group and Trust

Quarter YTD

2Q 2012 2Q 2011 30/06/12 30/06/11#

S$'000 S$'000 S$'000 S$'000

Balance as at beginning of the period 680,947 642,535 681,782 -

Operations Total return for the period after taxation and

before distribution

12,947

10,631

24,868

15,715

Net increase in net assets resulting from operations

693,894 653,166 706,650 15,715

Unitholders’ transactions

- Issue of units:

- Initial public offering - - - 665,673

- Manager’s fees payable in units (a)

1,071 884 2,144 884

Issue expenses - - - (28,222)

Distributions to Unitholders (14,428) (19,277) (28,257) (19,277)

Net increase in net assets resulting from Unitholders’ transactions

(13,357) (18,393) (26,113) 619,058

Unitholders’ funds at the end of the period 680,537 634,773 680,537 634,773

Notes:

(a) This represents the value of units to be issued to the Manager as partial consideration of the manager’s

fees incurred for the period. The units are to be issued within 30 days from quarter end. 1 (d)(ii) Details of any changes in the units

Group and Trust

Quarter YTD

2Q 2012 2Q 2011 30/06/12 30/06/11#

Issued units at the beginning of the period 637,295,453 634,117,085 636,145,601 -

- Issue of units: - Private placements - - - 124,804,555 - Initial public offering - - - 507,995,445 - Manager’s fees paid in units 1,125,640 - 2,275,492 1,317,085

Issued units at the end of the period 638,421,093 634,117,085 638,421,093 634,117,085

Units to be issued:

- Manager’s fees payable in units (a)

1,106,441 952,277 1,106,441 952,277

Total issued and to be issued units 639,527,534 635,069,362 639,527,534 635,069,362

Notes:

(a) These are additional units to be issued to the Manager as partial consideration of manager’s fees

incurred for the period. The units are to be issued within 30 days from the quarter end.

1(d)(iii) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on.

Not applicable.

2. Whether the figures have been audited, or reviewed and in accordance with which auditing

standard or practice

The figures have not been audited but have been reviewed by our auditors in accordance with Singapore Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”.

3. Where the figures have been audited, or reviewed, the auditors' report (including any

qualifications or emphasis of matter)


Please see attached review report. 4. Whether the same accounting policies and methods of computation as in the issuer's most

recently audited financial statements have been applied

Sabana Shari’ah Compliant REIT has applied the same accounting policies and methods of computation in the preparation of the financial statements for the current reporting period compared with the audited financial statements for the financial period ended 31 December 2011.

5. If there are any changes in the accounting policies and methods of computation, including any

required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change

Not applicable.

6. Earnings per unit (“EPU”) and Distribution per unit (“DPU”) of the Group for the current financial

period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends

Earnings per unit

Group and Trust

Quarter YTD

2Q 2012 2Q 2011 30/06/12 30/06/11#

Weighted average number of units 638,124,010 633,722,293 637,545,467 633,186,768

Earnings per unit for the period based on the

weighted average number of units in issue (cents)

(a)

2.03 1.68 3.90 2.48

Notes:

(a) The EPU calculation uses the total return for the period after taxation and before distribution, and the

weighted average number of units issued. The diluted EPU is the same as basic EPU as no dilutive instruments were in issue during the period.

Distribution per unit

In computing the DPU, the number of units as at the end of each period is used for the computation.

Quarter YTD

2Q 2012 2Q 2011 30/06/12 30/06/11#

Number of units issued and to be issued at

end of period entitled to distribution (a)

639,527,534 635,069,362 639,527,534 635,069,362

Distribution per unit for the period based on

the total number of units entitled to distribution (cents)

2.27 2.18 4.53 5.22

Notes:

(a) The computation of DPU is based on the number of units entitled to distribution comprising of the following:

• The number of units in issue as at 30 June 2012 of 638,421,093 (30 June 2011: 634,117,085); and • The units to be issued to the Manager by 31 July 2012 as partial consideration of manager’s fees

incurred for 2Q 2012 of 1,106,441 (by 31 July 2011 as partial consideration of manager’s fees incurred for 2Q 2011: 952,277).


7. Net asset value per unit based on units issued at the end of the period and immediately preceding financial year

Group and Trust

As at As at

30/06/12 31/12/11

NAV per unit (S$)

(a) 1.06 1.07

Notes:

(a) The number of units used to compute NAV per unit is 639,527,534 (31/12/11: 637,295,453). This

comprised: (i) The number of units in issue as at 30 June 2012 of 638,421,093 (31 December 2011:

636,145,601); and (ii) The units to be issued to the Manager by 31 July 2012 as partial consideration of manager’s fees

incurred for 2Q 2012 of 1,106,441 (by 31 January 2012 as partial consideration of manager’s fees incurred for 4Q 2011 of 1,149,852).

8. Review of the performance of the Group for the current financial period reported on

2Q 2012 vs 2Q 2011

Group


2Q 2012 2Q 2011

S$'000 S$'000 %

Gross revenue

(a) 20,346 17,384 17.0


(1,271) (842) (51.0)

Net property income 19,075 16,542 15.3 Finance income 51 36 41.7 Finance costs (4,018) (2,616) (53.6)


(3,967) (2,580) (53.8) Amortisation of intangible assets

(d) (366) (330) (10.9)

Manager’s fees (e)

(1,339) (1,105) (21.2) Trustee’s fees

(e) (107) (87) (23.0)

Donation of non-Shari’ah compliant income (f)

(39) (42) 7.1 Other trust expenses

(g) (503) (124) (305.6)

Net income 12,754 12,274 3.9 Net change in fair value of financial derivatives

(h) 193 (1,643) 111.7

Total return for the period before taxation and distribution

12,947 10,631 21.8

Income tax expense - - NM

Total return for the period before distribution 12,947 10,631 21.8 Distribution adjustments

(i) 1,554 3,218 (51.7)

Income available for distribution 14,501 13,849 4.7

NM denotes “not meaningful”. Notes:

(a) Gross revenue increased by 17% mainly due to contribution from the New Properties as they were

acquired in 4Q 2011. Net property income grew by 15.3% q-o-q mainly due to the same reason. (b) Property expenses increased by 51.0% mainly due to:

(i) Land rent, property tax and lease management fees incurred for New Properties acquired in 4Q 2011; and

(ii) Higher land rent and property tax incurred for 9 Tai Seng Drive and 1 Tuas Avenue 4. (c) Net financing costs increased by 53.8% mainly due to the amortisation of upfront fees and profit rates

relating to the additional S$144.3 million CMFs taken up in 4Q 2011. Higher finance costs were partially offset by the increase in finance income of 41.7% due to higher interest rates offered by financial institution for term deposits of longer tenure.

(d) Amortisation of intangible assets increased by 10.9% mainly due to quicker drawdown of rental support

pertaining to the property located at 9 Tai Seng Drive and 6 Woodlands Loop acquired in 4Q 2011.


(e) Manager's and Trustee’s fees increased by 21.2% and 24.1% respectively mainly due the acquisition of New Properties during 4Q 2011.

(f) Donation of non-Shari’ah income is 7.1% lower mainly due to lower penalty charged for late payment of

rental by lessees. (g) Other trust expenses were 305.6% higher due to higher registry service charges, valuation and due

diligences fees and professional fees incurred. (h) Net change in fair value of financial derivatives relates to the fair value of the profit rate swaps based on

broker quotes recognised between the last quarter and at the balance sheet date. (i) Distribution adjustments fell 51.7% mainly due to reason stated in (h) above as the item was adjusted

back to derive the income available for distribution. Current YTD vs Prior YTD

Group

YTD Fav / (Unfav)

30/06/12 30/06/11

#

S$'000 S$'000 %

Gross revenue

(a) 39,997 41,480 (3.6)


(2,426) (1,960) (23.8)

Net property income 37,571 39,520 (4.9) Finance income 106 55 92.7 Finance costs (8,039) (6,189) (29.9)


(7,933) (6,134) (29.3) Amortisation of intangible assets

(d) (682) (781) 12.7

Manager’s fees (e)

(2,680) (2,646) (1.3) Trustee’s fees

(e) (220) (213) (3.3)

Donation of non-Shari’ah compliant income (f)

(78) (89) 12.4 Other trust expenses

(g) (810) (287) (182.2)

Net income 25,168 29,370 (14.3) Net change in fair value of financial derivatives

(h) (300) (3,726) 91.9

Net change in fair value of investment properties (i)

- (9,929) NM


24,868 15,715 58.2



(j) 4,086 17,442 (76.6)

Income available for distribution 28,954 33,157 (12.7)


(a) Gross revenue decreased by 3.6% mainly due to reason stated in Note #, which was partially offset by

contribution from the New Properties as they were acquired in 4Q 2011. Net property income fell by 4.9% mainly due to the same reason.

(b) Property expenses increased by 23.8% mainly due to:

(i) Land rent, property tax and lease management fees incurred for New Properties acquired in 4Q 2011;

(ii) Higher land rent and property tax incurred for 9 Tai Seng Drive and 1 Tuas Avenue 4; offset by (iii) Lower utilities and property management fees due to reason stated in (a) above.

(c) Net financing costs increased by 29.3% mainly due to the amortisation of upfront fees and profit rates

relating to the additional S$144.3 million CMFs taken up in 4Q 2011. This was partially offset by the increase in finance income of 92.7% due to higher interest rates offered by financial institution for term deposits of longer tenure.

(d) Amortisation of intangible assets decreased 12.7% mainly due to slower drawdown of rental support

pertaining to the property located at 9 Tai Seng Drive and partially offset by drawdown of rental support pertaining to the property located at 6 Woodlands Loop acquired in 4Q 2011.

(e) Manager's and Trustee’s fees increased by 1.3% and 3.3% respectively mainly the acquisition of New

Properties during 4Q 2011 and partially offset by reason stated in Note #.


(f) Donation of non-Shari’ah income is 12.4% lower mainly due to lower in penalty charged for late payment of rental by lessees.

(g) Other trust expenses were 182.2% higher due to higher unitholding reporting, registry services charges

and professional fees incurred. (h) Net change in fair value of financial derivatives relates to the change in fair value of the profit rate swaps

based on broker quotes recognised during the Current YTD and Prior YTD respectively. (i) Net change in fair value of investment properties relates to their changes in fair value recognised during

the Current YTD and Prior YTD respectively. (j) Distribution adjustments fell 76.6% mainly due to reasons stated in (h) and (i) above as these items

were adjusted back to derive the income available for distribution.


9. Variance between forecast and actual results Variance between the Forecast and Actual results for 2Q 2012

Group

2Q 2012 Fav / (Unfav)

%

Actual S$'000

Forecast(a)

S$'000

Gross revenue

(b) 20,346 17,222 18.1

Property expenses (c)

(1,271) (683) (86.1)


Net financing costs (d)

(3,967) (2,500) (58.7) Amortisation of intangible assets (366) (327) (11.9) Manager’s fees

(e) (1,339) (1,091) (22.7)

Trustee’s fees (e)

(107) (87) (23.0) Donation of non-Shari’ah compliant income

(f) (39) (33) (18.2)

Other trust expenses (g)

(503) (351) (43.3)


(h) 193 - NM


(i)

12,947 12,150 6.6



(j) 1,554 1,673 (7.1)

Income available for distribution (j)

14,501 13,823 4.9


(a) The forecast figures are extracted from the Prospectus dated 22 November 2010 for the Projection Year

2012 and pro-rated for 2Q 2012. It was assumed in the forecast that there was no change in fair value of financial derivatives during 2Q 2012.

(b) Gross revenue of S$20.3 million exceeded forecast for the same period by 18.1% mainly due to

contribution from the New Properties as they were acquired in 4Q 2011. Net property income of S$19.1 million was better by 15.3% as compared with forecast for the same reason.

(c) Property expenses of S$1.3 million was higher than forecast by 86.1% for the same period mainly due

to:

(i) Land rent, property tax and lease management fees incurred for New Properties acquired in 4Q 2011; and

(ii) Higher land rent and property tax incurred for 9 Tai Seng Drive and 1 Tuas Avenue 4. (d) Net financing costs increased 58.7% mainly due to the amortisation of upfront fees and profit rates

relating to the additional S$144.3 million CMFs taken up in 4Q 2011, offset by increase in finance income which was higher by 96.2% due to higher interest rates offered by financial institution for term deposits of longer tenure.

(e) Manager's and Trustee’s fees were 22.7% and 23.0% higher than forecast due to the acquisition of New

Properties during 4Q 2011. (f) The amount of non-Shari’ah income for the period, subjected to the cleansing process is 18.2% higher

than forecast mainly due to higher penalty fees received for late payment from tenant. (g) Other trust expenses were 43.3% higher mainly due to higher legal and valuation fees offset by lower

printing and stationary, unitholding reporting and investor communications expenses incurred as compared to forecast.

(h) Net change in fair value of financial derivatives relates to the fair value of the profit rate swaps based on

broker quotes recognised between the last quarter and at the balance sheet date. Refer to Note (a) for the basis of forecast.


(i) Total return for the period before taxation was 6.6% higher than forecast mainly due to:

(i) Higher net property income of S$2.5 million offset by; (ii) Higher finance expense of S$1.5 million; and (iii) Higher Manager’s fees of S$0.3 million which were mainly attributable to the the acquisition of New

Properties during 4Q 2011. (j) Lower distribution adjustments were mainly due to higher Manager’s fees payable in units by S$0.2

million, higher amortisation of transaction costs by S$0.1 million and non tax deductible professional fees of $0.3 million adjusted back as income available for distribution offset by net gain in the fair value of financial derivatives of S$0.2 million and higher effects of recognising rental income on a straight line basis over the lease term by S$0.7 million adjusted against income available for distribution.

Refer to Note (a) for the basis of forecast of net change in fair value of financial derivatives. The net change in fair value of financial derivatives does not have any impact on the income available for distribution. Hence income available for distribution was 4.9% higher than forecast after taking in the distribution adjustments.

Variance between the Forecast and Actual results for Current YTD

Group

Current YTD Fav / (Unfav)

%

Actual S$'000

Forecast(a)

S$'000

Gross revenue

(b) 39,997 34,443 16.1

Property expenses (c)

(2,426) (1,365) (77.7)


Net financing costs (d)

(7,933) (4,998) (58.7) Amortisation of intangible assets (682) (654) (4.3) Manager’s fees

(e) (2,680) (2,185) (22.7)

Trustee’s fees (e)

(220) (175) (25.7) Donation of non-Shari’ah compliant income

(f) (78) (66) (18.2)

Other trust expenses (g)

(810) (698) (16.0)


(h) (300) - NM


(i)

24,868 24,302 2.3



(j) 4,086 3,349 22.0

Income available for distribution (j)

28,954 27,651 4.7


(a) The forecast figures are extracted from the Prospectus dated 22 November 2010 for the Projection Year

2012 and pro-rated for Current YTD. It was assumed in the forecast that there was no change in fair value of financial derivatives during Current YTD.

(b) Gross revenue of S$40.0 million exceeded forecast for the same period by 16.1% mainly due to

contribution from the New Properties as they were acquired in 4Q 2011. Net property income of S$37.6 million was better by 13.6% as compared with forecast for the same reason.

(c) Property expenses of S$2.4 million was higher than forecast by 77.7% for the same period mainly due

to:

(iii) Land rent, property tax and lease management fees incurred for New Properties acquired in 4Q 2011; and

(iv) Higher land rent and property tax incurred for 9 Tai Seng Drive and 1 Tuas Avenue 4.


(d) Net financing costs increased 58.7% mainly due to the amortisation of upfront fees and profit rates relating to the additional S$144.3 million CMFs taken up in 4Q 2011, offset by increase in finance income which was higher by 96.3% due to higher interest rates offered by financial institution for term deposits of longer tenure.

(e) Manager's and Trustee’s fees were 22.7% and 25.7% higher than forecast due to the acquisition of New

Properties during 4Q 2011. (f) The amount of non-Shari’ah income for the period, subjected to the cleansing process is 18.2% higher

than forecast mainly due to higher penalty fees received for late payment from tenant. (g) Other trust expenses were 16.0% higher mainly due to higher legal and valuation fees offset by lower

printing and stationary, unitholding reporting and investor communications expenses incurred as compared to forecast.

(h) Net change in fair value of financial derivatives relates to the change in fair value of the profit rate swaps

based on broker quotes recognised for the Current YTD. Refer to Note (a) for the basis of forecast. (i) Total return for the period before taxation was 2.3% higher than forecast mainly due to:

(iv) Higher net property income of S$4.5 million offset by; (v) Higher finance expense of S$3.0 million; (vi) Higher Manager’s fees of S$0.5 million which were mainly attributable to the the acquisition of New

Properties during 4Q 2011; and (vii) Net change in the fair value of financial derivatives of S$0.3 million.

(j) Higher distribution adjustments were mainly due to higher Manager’s fees payable in units by S$0.4

million, higher amortisation of transaction costs by S$0.2 million, net loss in the fair value of financial derivatives of S$0.3 million and non tax deductible professional fees of $0.3 million adjusted back as income available for distribution offset by higher effects of recognising rental income on a straight line basis over the lease term by S$0.8 million adjusted against income available for distribution.

Refer to Note (a) for the basis of forecast of net change in fair value of financial derivatives. The net change in fair value of financial derivatives does not have any impact on the income available for distribution. Hence income available for distribution was 4.7% higher than forecast after taking in the distribution adjustments.


10. Commentary on the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.

Private sector economists have upgraded their 2012 economic growth forecast for Singapore to 3%, up from 2.5% previously. Meanwhile, the government’s official forecast is in the range of 1% to 3%.

(1)

Accordingly to DTZ’s research on industrial property market, as a result of prices rising faster than rents, yields are being compressed. DTZ expects to see further price increases while rents to soften for the rest of 2012.

(2)

Colliers International is of the view that Singapore’s sound economic fundamentals should help the country and the industrial market ride through all the current uncertainties. Any fall in capital values and rents will be capped at 3% in the next 12 months.

(3)

Meanwhile, Savills Research opined that barring external shocks or government intervention, industrial property prices could remain resilient with a biased upside. Industrial rents are expected to hold firm this year.

(4)

Despite subdued outlook for the global economy and Singapore industrial property market, the Manager is positive about the Trust’s performance for 2012, given that the majority of the existing master leases will not expire until the end of 2013, and beyond. (1) Aaron, Low. “Analysts raise Singapore growth forecast to 3%.” www.straitstimes.com. The Straits Times. 14 June 2012. Web. 9 July 2012. (2) Siow Ying, Cheng; Chor Hoon Chua; Wong Wei Chen. “Industrial capital values rise while rents soften.” Singapore. DTZ. 3 July 2012. Web. 9 July 2012. (3) Siew Chuin, Chia. “Singapore Industrial Property Market.” The Knowledge Report 1Q 2012. 4 June 2012. Colliers International. Web. 9 July 2012. (4) Cheong, Alan; Smith, Simon. “Briefing – Singapore Industrial Sector.” savills.com.sg/research. Savills Research Singapore. July 2012. Web. 10 July 2012.

11. Distributions (a) Current financial period

Any distribution declared for the current period? Yes

Name of distribution: Distribution for the second quarter ended 30 June 2012

Distribution Type Taxable income distribution – 2.27 cents per unit

Par value of units: Not meaningful

Tax rate: Taxable Income

These distributions are made out of Sabana Shari’ah Compliant REIT’s taxable income. Unitholders receiving distributions will be assessable to Singapore income tax on the distributions received except for individuals where these distributions are exempt from tax.

Distributions made to individuals, irrespective of their nationality or tax residence status, who hold the units as investment assets will be tax exempt. However, distributions made to individuals who hold units as trading assets or through a partnership will be taxed at the level of these individuals at their applicable income tax rates.

All unitholders who are not individuals are subject to Singapore income tax / withholding tax on distributions of Sabana Shari’ah Compliant REIT.

(b) Corresponding period of the immediately preceding financial year

Any distribution declared for the current period? Yes

Name of distribution: Distribution for the second quarter ended 30 June 2011


Distribution Type Taxable income distribution – 2.18 cents per unit

Par value of units: Not meaningful

Tax rate: Taxable Income

These distributions are made out of Sabana Shari’ah Compliant REIT’s taxable income. Unitholders receiving distributions will be assessable to Singapore income tax on the distributions received except for individuals where these distributions are exempt from tax.

Distributions made to individuals, irrespective of their nationality or tax residence status, who hold the units as investment assets will be tax exempt. However, distributions made to individuals who hold units as trading assets or through a partnership will be taxed at the level of these individuals at their applicable income tax rates.

All unitholders who are not individuals are subject to Singapore income tax / withholding tax on distributions of Sabana Shari’ah Compliant REIT.

(c) Date Payable 29 August 2012

(d) Books Closure Date 27 July 2012 12. If no distribution has been declared/(recommended), a statement to that effect

Not applicable.

13. General mandate relating to interested person transactions

The Trust has not obtained a general mandate from unitholders for interested person transactions.

14. Negative Confirmation By The Board Pursuant To Rule 705(5)

To the best of our knowledge, nothing has come to the attention of the Board of Directors of the Manager of Sabana Shari’ah Compliant REIT which may render these unaudited interim financial results to be false or misleading, in any material aspect.

On behalf of the Board of Directors of Sabana Real Estate Investment Management Pte. Ltd. (Company registration number 201005493K) as Manager of Sabana Shari’ah Compliant Real Estate Investment Trust

Steven Lim Kok Hoong Kevin Xayaraj Director Director

By Order of the Board Chang Ai Ling Company Secretary Sabana Real Estate Investment Management Pte. Ltd. (Company registration number 201005493K) as Manager of Sabana Shari’ah Compliant Real Estate Investment Trust

19 July 2012


This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses, including employee wages, benefits and training, property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events. Any discrepancies in the tables included in this announcement between the listed amounts and total thereof are due to rounding.

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