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SABANA SHARI’AH COMPLIANT INDUSTRIAL REIT4Q 2016 and FY 2016: Fourth Quarter and Full Year Ended 31 December 2016 Financial Results Presentation

25 January 2017

Disclaimer

This presentation shall be read in conjunction with the financial information of Sabana Shari’ah Compliant Industrial RealEstate Investment Trust (“Sabana REIT” or the “Trust”) for the fourth quarter from 1 October 2016 to 31 December 2016(“4Q 2016”) and for the full year from 1 January 2016 to 31 December 2016 (“FY 2016”).

This presentation 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 ofrisks, uncertainties and assumptions.

Representative examples of these factors include (without limitation) general industry and economic conditions, interestrate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels ofproperty rental income, changes in operating expenses, including employee wages, benefits and training, propertyexpenses and governmental and public policy changes and the continued availability of financing in the amounts and theterms necessary to support future business. You are cautioned not to place undue reliance on these forward lookingstatements, which are based on current view of management on future events.

Any discrepancies in the tables included in this presentation between the listed amounts and total thereof are due torounding.

2

Important Notice

3

Contents

III. Capital Management 16

IV. Portfolio Performance 19

I. Key Highlights 5

V. Outlook 29

VI. 4Q 2016 Non-Shari’ah Income 33

II. Financial Performance 7

VII. Distribution Details 35

4

Contents



I. Key Highlights 5

V. Outlook 29




• On a q-o-q basis, income available for distribution increased from S$8.9 million in 3Q 2016 to S$9.3 million in4Q 2016 and net property income (“NPI”) remained relatively unchanged.

• Announced a Rights Issue on 20 December 2016 to raise gross proceeds of approximately S$80.2 million topartially fund the three proposed acquisitions(1). The Rights Units were also oversubscribed at approximately209.1%(2) with valid acceptances and excess applications coming in for a total of 649.6 million Rights Units.

• Sabana REIT generated Distribution per Unit (“DPU”) of 0.88 Singapore cents. Excluding the Rights Issue, DPUfor 4Q 2016 would have been at 1.25 Singapore cents which is 4.2% higher in comparison to 3Q 2016.

• Aggregate leverage of 43.2% as at 31 December 2016 is expected to fall by 3.2% to approximately 40.0%upon successful completion of the Rights Issue by 26 January 2017.

• Excluding the Rights Units, Net Asset Value per Unit as at 31 December 2016 was at S$0.75.

• Due to the conversion of 39 Ubi Road 1, multi-tenancy occupancy level decreased from 82.6% to 80.1%(3) in4Q 2016. The overall occupancy level is at 87.2%(4) for the quarter ended 31 December 2016.

5

Key Highlights for 4Q 2016

(1) SGX announcement of the proposed acquisitions of 72 Eunos Avenue 7, 107 Eunos Avenue 3 and 47 Changi South Avenue 2 was made on 8 December 2016, 14 December2016 and 15 December 2016 respectively.

(2) SGX announcement of the final results of the underwritten and renounceable Rights Issue was made on 20 January 2017.(3) 151 Lorong Chuan, 8 Commonwealth Lane, 9 Tai Seng Drive, 15 Jalan Kilang Barat, 23 Serangoon North Avenue 5, 508 Chai Chee Lane, 34 Penjuru Lane, 2 Toh Tuck Link,

123 Genting Lane and 39 Ubi Road 1.(4) By Net Lettable Area (“NLA”). One property, 218 Pandan Loop (NLA 43,103 sq ft), is currently vacant, pending divestment announced on 5 December 2016.

Contents



I. Key Highlights 5

V. Outlook 29




6

Gross Revenue and NPI Since Listing

7

S$ m

illio

ns

24

.1

17

.4

17

.4

18

.1 19

.7

20

.3

20

.3

21

.5

21

.5

21

.6

21

.6

24

.8

24

.6

25

.4

25

.1

25

.3

25

.4

25

.4

25

.5

24

.6

23

.6

22

.6

23

.0

22

.5

23

.0

16

.5

16

.6

17

.0

18

.5 19

.1

19

.1 20

.2

20

.3

20

.2

20

.0

19

.9

18

.4

18

.4

18

.0

18

.2

18

.6

18

.4

18

.3

16

.3

15

.2

14

.0

13

.9

13

.9

-

5.0

10.0

15.0

20.0

25.0

30.0

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012

2Q2012

3Q2012

4Q2012

1Q2013

2Q2013

3Q2013

4Q2013

1Q2014

2Q2014

3Q2014

4Q2014

1Q2015

2Q2015

3Q2015

4Q2015

1Q2016

2Q2016

3Q2016

4Q2016

Gross Revenue NPI

(1)

(1) For the period from date of listing on 26 November 2010 to 31 March 2011.

As at 31 December 2016

60.659.4

61.8

51.650.1

37.0

34.1%37.6% 36.9% 38.0% 41.7% 43.2%

9.539.28 9.38

7.33

6.85

4.17

0.0

2.0

4.0

6.0

8.0

10.0

12.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Total income available for distribution (S$ millions) Aggregate leverage Distribution per Unit (cents)

DP

U (cen

ts)D

PU

(cents)

(2)


Annual DPU Performance

8

(1) For the period from 26 November 2010 to 31 December 2011.(2) Includes 310,712,244 Rights Units issued by 26 January 2017.

Tota

l in

com

e av

aila

ble

fo

r d

istr

ibu

tio

n(

S$ m

illio

ns)

(1)

19.3

13.8

13.6

13.8 14.5

14.5

15.0

15.4

15.5

15.6

15.6

15.1

13.0

13.0

12.7

12.9

13.0

13.2

13.0

11.0

9.8

9.1

8.9 9.3

24.9

%

25.1

%

23.8

%

34.1

%

33.9

%

34.1

%

38.3

%

37.6

%

37.7

%

37.1

%

37.5

%

36.9

%

37.0

%

37.0

%

37.0

%

38.0

%

38.0

%

37.9

%

38.0

%

41.7

%

39.6

%

41.2

%

41.5

%

43.2

%

3.04

2.18 2.14 2.172.26 2.27

2.342.41 2.41 2.40 2.38

2.19

1.88 1.86 1.81 1.78 1.78 1.80 1.77

1.50

1.331.23 1.20

0.88

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

0.0

5.0

10.0

15.0

20.0

25.0

Total income available for distribution (S$ millions) Aggregate leverage Distribution per Unit (cents)

Tota

l in

com

e av

aila

ble

fo

r d

istr

ibu

tio

n (

S$ m

illio

ns)

DP

U (cen

ts)Quarterly DPU Performance

9

(1) For the period from 26 November 2010 to 31 March 2011.(2) Includes 310,712,244 Rights Units issued by 26 January 2017.

(1)


(2)

Financial Performance

(1) On 20 December 2016, Sabana REIT announced an underwritten and renounceable Rights Issue of 310,712,244 new Units in Sabana REIT.(2) Based on 1,053,083,530 Units issued and to be issued as at 31 December 2016 including the Rights Units of 310,712,244 issued by 26 January 2017 (the “Rights Issue”).(3) DPU for prior periods restated to reflect the effect of bonus element in the Rights Issue.(4) Based on 742,371,286 Units issued and to be issued as at 31 December 2016 excluding the Rights Units of 310,712,244 issued by 26 January 2017 (the “Rights Issue”).

10

(in S$'000) FY 2016 FY 2015Variance

(%)

Gross revenue 91,807 100,824 (8.9)

Net property income (“NPI”) 56,942 71,605 (20.5)

Income available for distribution 36,949 50,135 (26.3)

DPU (cents) (with effects of Rights Issue(1) – as reported and restated)

4.17(2)(3) 5.99(3) (30.4)

DPU (cents)(without effects of Rights Issue(1) – for comparison only)

5.01(4) 6.85 (26.9)

For the year ended 31 December 2016


(1) On 20 December 2016, Sabana REIT announced an underwritten and renounceable Rights Issue of 310,712,244 new Units in Sabana REIT.(2) Based 1,053,083,530 Units issued and to be issued as at 31 December 2016 including the Rights Units of 310,712,244 issued by 26 January 2017 (the “Rights Issue”).(3) Based on 742,371,286 Units issued and to be issued as at 31 December 2016 excluding the Rights Units of 310,712,244 issued by 26 January 2017 (the “Rights Issue”).

11

(in S$'000) 4Q 2016 3Q 2016Variance

(%)

Gross revenue 22,540 23,031 (8.2)

Net property income (“NPI”) 13,894 13,911 (0.1)

Income available for distribution 9,258 8,858 4.5

DPU (cents)(with effects of Rights Issue(1) – as previously reported)

0.88(2) 1.20 (16.2)

DPU (cents)(without effects of Rights Issue(1) – for comparison only)

1.25(3) 1.20 4.2

For the quarter ended 31 December 2016


For the financial year ended 31 December 2016• Gross revenue decreased by 8.9% mainly due tonegative rental revisions for certain master leasesrenewals in 4Q 2015; lower average portfoliooccupancy in Current YTD over Prior YTD largelyarising from the conversion of 23 Serangoon NorthAvenue 5, 34 Penjuru Lane and 15 Jalan Kilang Baratinto multi-tenanted lease arrangements and non-renewal of 218 Pandan Loop upon the expiry of theirmaster leases in 4Q 2015; lower average occupancyand contribution from 39 Ubi Road 1 which wasconverted into multi-tenanted lease arrangements in4Q 2016; expiry of rental support at 9 Tai Seng Drivein 2Q 2015; and lower contribution from theDivestment Properties which were divested in 1Q2016.

• Property expenses increased by 19.3% mainly dueto higher service, repairs, maintenance, property tax,land rent, utilities and marketing expenses from 34Penjuru Lane, 23 Serangoon North Avenue 5 and 15Jalan Kilang Barat which were converted into multi-tenanted lease arrangements and non-renewal of218 Pandan Loop’s triple-net master lease in 4Q2015; higher service, repairs, maintenance, propertytax, land rent, utilities, and marketing expenses from39 Ubi Road 1 which was converted into multi-tenanted lease arrangements in 4Q 2016; higherproperty tax and land rent expenses from 30 & 32Tuas Avenue 8, 26 Loyang Drive and 21 Joo KoonCrescent which were converted into non-triple netmaster lease arrangements in 4Q 2015; higher netimpairment losses on trade receivables, largelyarising from the master tenant at 1 Tuas Avenue 4whose arrears were in excess of the security depositheld in Current YTD over Prior YTD; and partiallyoffset by lower property expenses from theDivestment Properties which were divested in 1Q2016.

(in S$'000) FY 2016 FY 2015Variance

(%)

Gross revenue 91,807 100,824 (8.9)

Property expenses (34,865) (29,219) (19.3)

NPI 56,942 71,605 (20.5)

Net finance costs (20,796) (21,418) 2.9

Manager's fees (5,333) (6,263) 14.8

Trustee's fees (454) (544) 16.5

Donation of non-Shari'ah compliant income (113) (63) (79.4)

Other trust expenses (1,055) (1,209) 12.7

Loss on exercise of put option on Convertible Sukuk by Sukuk Holders(1) - (648) 100.0

Net income 29,191 41,013 (28.8)

Net change in fair value of financial derivatives (235) 2,259 (110.4)

Net change in fair value of investment properties (90,862) (116,708) 22.1

Loss on divestment of investment properties (558) - NM

Total return before taxation (62,464) (73,436) 14.9

Distribution adjustments(2) 99,413 123,571 (19.5)


12

NM denotes “not meaningful”.(1) This represents the loss relating to the redemption and cancellation of aggregate principal amount of S$29.7 million of

Convertible Sukuk pursuant to the put option exercised by certain Sukukholders.(2) Comprise the portion of management fees paid/payable in Units, donation of non-Shari’ah compliant income,

amortisation of capitalised transaction costs incurred on borrowings, straight-lining adjustments on rental income foraccounting purposes, Trustee’s fees, net change in fair value of financial derivatives and other income/expenses whichare non-chargeable/deductible for tax purposes.


For the quarter ended 31 December 2016• Gross revenue decreased by 8.2% mainly due tonegative rental revisions for certain master leasesrenewals in 4Q 2015; lower average occupancy andcontribution from 23 Serangoon North Avenue 5, 34Penjuru Lane and 15 Jalan Kilang Barat which wereconverted into multi-tenanted lease arrangementsand non-renewal of 218 Pandan Loop upon theexpiry of their master leases in 4Q 2015; loweraverage occupancy and contribution from 39 UbiRoad 1 which was converted into multi-tenantedlease arrangements in 4Q 2016; and lowercontribution from the Divestment Properties whichwere divested in 1Q 2016.

• Property expenses increased by 4.5% mainly dueto higher service, repairs, maintenance, propertytax, land rent, utilities and marketing expenses from34 Penjuru Lane, 23 Serangoon North Avenue 5 and15 Jalan Kilang Barat which were converted intomulti-tenanted lease arrangements and non-renewal of 218 Pandan Loop’s triple-net masterlease in 4Q 2015; higher service, repairs,maintenance, property tax, land rent, utilities, andmarketing expenses from 39 Ubi Road 1 which wasconverted into multi-tenanted lease arrangementsin 4Q 2016; higher property tax and land rentexpenses from 30 & 32 Tuas Avenue 8, 26 LoyangDrive and 21 Joo Koon Crescent which wereconverted into non-triple net master leasetenancies in 4Q 2015; higher net impairment losseson trade receivables in 4Q 2016 over 4Q 2015largely arising from the master tenant at 1 TuasAvenue 4 whose arrears were in excess of thesecurity deposit held; and partially offset by lowerproperty expenses from the Divestment Propertieswhich were divested in 1Q 2016.

(in S$'000) 4Q 2016 4Q 2015Variance

(%)

Gross revenue 22,540 24,561 (8.2)

Property expenses (8,646) (8,274) (4.5)

NPI 13,894 16,287 (14.7)

Net finance costs (5,269) (5,381) 2.1

Manager's fees (1,286) (1,469) 12.5

Trustee's fees (110) (130) 15.4

Donation of non-Shari'ah compliant income (31) (24) (29.2)

Other trust expenses (198) (312) 36.5

Net income 7,000 8,971 (22.0)

Net change in fair value of financial derivatives 1,281 124 NM

Net change in fair value of investment properties (40,019) (116,708) 65.7

Total return before taxation (31,738) (107,613) 70.5

Distribution adjustments(1) 40,996 118,648 (65.4)


13

NM denotes “not meaningful”.(1) Comprise the portion of management fees paid/payable in Units, donation of non-Shari’ah compliant income,

amortisation of capitalised transaction costs incurred on borrowings, straight-lining adjustments on rental income foraccounting purposes, amortisation of intangible assets, Trustee’s fees, net change in fair value of financial derivatives,net change in fair value of investment properties and other income/expenses which are non-chargeable/deductible fortax purposes.

Balance Sheet

(1) Comprises 739,791,059 units in issue as at 31 December 2016 and 2,580,227 units to be issued to the Manager by 31 January 2017, as partial consideration of Manager’s feesincurred for the period from 1 October 2016 to 31 December 2016. Excluding the effects of the Rights Issue.

(2) Excludes distributable income of approximately S$9.3 million available for distribution for the quarter ended 31 December 2016.

14

As at 31 December 2016 S$'000

Investment properties 990,600

Investment properties held for divestment 13,000

Other assets 19,289

Total assets 1,022,889

Borrowings, at amortised cost 437,924

Other liabilities 28,170

Total liabilities 466,094

Net assets attributable to Unitholders 556,795

Units in issue(1) 742,371,286

NAV per unit (S$) 0.75

Adjusted NAV per unit(2) (S$) 0.74

15

Contents



I. Key Highlights 5

V. Outlook 29




0

50

100

150

200

250

2016 2017 2018 2019 2020

Term CMF Convertible Sukuk Multicurrency Islamic Trust Certificates Revolving Murabahah Facility Revolving CMF

130.0

100.042.8

90.0

117.8

75.0

30.0

90.0(1)

90.0

103.3(2)13.3

Borrowings Maturity Profile

16


S$ m

illio

ns

(1) Excludes S$50.0 million of undrawn Revolving Murabahah Facility.(2) Excludes S$4.7 million of undrawn Revolving CMF.

Maturities of total outstanding borrowings of S$441.1 million evenly staggered over the next 4 years.

Capital Structure At A Glance

(1) Ratio of total borrowings and deferred payment over deposited property as defined in the Property Funds Appendix of the Code on Collective Investment Schemes.(2) Post the completion of the Rights Issue by 26 January 2017, aggregate leverage is expcted to fall to approximately 40.0%.(3) Inclusive of amortisation transaction costs.(4) Ratio of Net Property Income over profit expense (excluding amortisation of transaction costs and other fees) for the period from 1 October 2016 to 31 December 2016.

17


Borrowings S$441.1 million

Aggregate leverage(1) 43.2%(2)

Proportion of total borrowings fixed 90.2%

Average all-in financing cost(3) 4.2%

Outstanding Term CMF S$195.0 million

Outstanding Revolving CMF S$13.3 million

Convertible Sukuk due 2017 S$42.8 million

Trust Certificates S$190.0 million

Weighted average tenor of borrowings 1.9 years

Profit cover(4) 3.1 times

Unencumbered assets S$331.5 million

18

Contents



I. Key Highlights 5

V. Outlook 29




Our properties are diversified into four industrial segments across Singapore, close to expressways and public transportation.

Property Locations

19

Occupancy Rates

(1) 5 triple net & 5 single net master leases.(2) 151 Lorong Chuan, 8 Commonwealth Lane, 9 Tai Seng Drive, 15 Jalan Kilang Barat, 23 Serangoon North Avenue 5, 508 Chai Chee Lane, 34 Penjuru Lane, 2 Toh Tuck Link,

123 Genting Lane and 39 Ubi Road 1.(3) By Net Lettable Area (“NLA”). One property, 218 Pandan Loop (NLA 43,103 sq ft), is currently vacant, pending divestment announced on 5 December 2016.(4) Weighted by gross revenue (master leases of 10 properties).(5) Weighted by gross revenue (10 master leases and 10 multi-tenanted properties, excluding 218 Pandan Loop).


Total portfolio GFA 4,403,674 sq ft

Portfolio occupancy

10 properties, master leases(1) 100.0%

10 properties, multi-tenanted(2) 80.1%

21 properties, total portfolio(3) 87.2%

Weighted average master lease term to expiry(4) 2.9 years

Weighted average unexpired lease term for the underlying land(5) 34.6 years

Weighted average portfolio lease term to expiry(5) 2.7 years

20

60.0%

70.0%

80.0%

90.0%

100.0%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2011 2012 2013 2014 2015 2016

Sabana REIT Portfolio Industry (Factory) Industry (Warehouse)

Comparisons to Singapore industrial average occupancy levels

21

(1) Source: Property Market Information by Urban Redevelopment Authority and Quarterly Market Report by Jurong Town Corporation.(2) 4Q 2016 data are not available as at 31 December 2016 from Jurong Town Corporation.

Occupancy Levels Since Listing

(1)(1)

(2)

• High-tech Industrial• Chemical Warehouse & Logistics

Asset Breakdown by NLA for 4Q 2016(1)

Diverse Asset Types

• Warehouse & Logistics• General Industrial

Sabana REIT’s portfolio is diversified in the following asset types:

22

(1) As at 31 December 2016.

Gross Revenue by Asset Type for 4Q 2016

High-tech Industrial

40.9%

Warehouse & Logistics

35.0%

General Industrial

14.9%

Chemical Warehouse & Logistics

9.2%

High-tech Industrial

58.8%

Warehouse & Logistics

23.1%

General Industrial

10.4%

Chemical Warehouse &

Logistics 7.7%

Long Weighted Average Leasehold For Underlying Land

(1) As at 31 December 2016, weighted by GFA.

Well distributed, long underlying land leases, with an average of 34.6 years by GFA.

Percentage of unexpired land lease term by GFA(1)

23

9.4%6.6%

-

20.5%

50.8%

12.7%

-

2032 - 2036 2037 - 2041 2042 -2046 2047 -2051 2052 - 2056 2057- 2061 Beyond 2061

As at 31 Dec 2016

As at 30 Sept 2016

Total NLA (sq ft) 3,605,294 3,605,294

Total number of direct and sub-tenants 114 122

Weighted average lease term to expiry (mths)(1) 31.4 31.0

Quality Assets Attract Quality Tenants

24

(1) Weighted by sub-tenancy gross rent.

Diverse Sub-tenant Base

No concentration in any single trade sector

25

(1) As at 31 December 2016.

Sub-tenants’ industry diversification by NLA(1):

Logistics9.2%

R & D1.1%

Info Technology12.9%

Storage6.3%

Telecommunication & Data Warehousing

10.4%

Fashion & Apparel7.5%

Electronics14.0%

General Manufacturing Industries

1.4%

F & B1.1%

Chemical8.2%

Construction & Utilities2.3%

Engineering6.7%

Healthcare3.7%

Printing2.4%

Others12.8%

Lease Expiry by NLA for 4Q 2016(1)

Lease Management

26

(1) As at 31 December 2016. (2) Two properties: 21 Joo Koon Crescent and 6 Woodlands Loop.(3) Three properties: 33 & 35 Penjuru Lane, 18 Gul Drive and 51 Penjuru Road. Master tenants are Sponsor related properties.

17.1%(3)

5.3%(2)

7.6% 6.5% 9.2%1.0%

14.4%

11.8% 10.7%16.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2016 2017 2018 2019 Beyond 2019

Master Lease Multi-tenanted

Lease Type by NLA for 4Q 2016(1)

Lease Management

27

(1) As at 31 December 2016. Excludes 218 Pandan Loop, whch is currently vacant, pending divestment announced on 5 December 2016.

Multi-tenanted

59.3%

Master Leases40.7%

28

Contents



I. Key Highlights 5

V. Outlook 29




Singapore Industrial

Sector

Outlook

Singapore’s economic growth outlook for 4Q 2016

• According to advance estimates released by the Ministry of Trade and Industry (MTI),the Singapore economy expanded by 1.8% in the fourth quarter of 2016 on a y-o-ybasis. Based on a quarter-on-quarter seasonally-adjusted basis, overall GDP grew 9.1%,thus making a reversal from the 1.9% decline in the third quarter and averted atechnical recession as industrial production increased in November 2016(1).

• In the latest 2016 quarterly survey by the Monetary Authority of Singapore, privatesector economists expect growth to be at 1.4% in 2017 amidst a lacklustre globaloutlook. However, the economy is expected to grow by 1.5% next year, which is slightlylower than their forecast in September 2016 of 1.8% growth(2).

Singapore Economy

Sources:(1) “Singapore’s economy grows 1.8% in Q4; 2016 GDP at 1.8%”. Channel NewsAsia. 3 January 2017. Web. 3 January 2017.

(2) “Private economists slash forecasts for Singapore GDP growth to 1.4% for 2016, 1.5% for 2017: MAS survey”. The Business Times. 14 December 2016. Web. 14 December 2016.

(3) “JTC Quarterly Market Report. Industrial Properties. Third Quarter 2016”. 3Q 2016. Web. 3Q 2016.

29

Industrial property outlook

• According to the 3Q 2016 industrial property market report by JTC, about 3.0 millionsqm of industrial space is estimated to available till the end of 2017. In comparison withthe past three years, this is more than the average annual supply and demand ofapproximately 1.9 million sqm and 1.2 million sqm respectively which is likely to putfurther downward pressure on occupancy rates, prices and rentals(3).

Outlook

30

The Trust

Management Strategy and Outlook

• The Group reported a deficit in total return after taxation and before distribution, for 4Q 2016and for FY 2016, mainly due to revaluation loss on its investment properties against abackdrop of sluggish economic growth and oversupply of industrial space. Consequently, forthe quarter, aggregate leverage increased from 41.5% to approximately 43.2%, but isexpected to fall by 3.2% to approximately 40.0% upon successful completion of the RightsIssue.

• Further to the announcements made between 8 December 2016 to 30 December 2016, grossproceeds from the approximate S$80.2 million Rights Issue(1) will be partially used to fund thethree proposed acquisitions(2). For the proposed acquisition of the 47 Changi South Avenue 2,the Manager will be seeking Unitholders’ approval at an extraordinary general meeting ofUnitholders to be held before 30 June 2017(3). The Manager targets to complete all threetransactions by 30 June 2017.

• Pending deployment of the net proceeds from the Rights Issue to be completed by 26 January2017, the net proceeds may, subject to relevant laws and regulations, be deposited withbanks and/or financial institutions, or used for repayment of short-term borrowings or usedfor any other purpose on a short-term as the Manager may, in its absolute discretion, deemfit.

Sources:(1) Based on SGX announcement of the underwritten and renounceable Rights Issue made on 20 December 2016.

(2) SGX announcements of the proposed acquisitions of 72 Eunos Avenue 7, 107 Eunos Avenue 3 and 47 Changi South Avenue 2 were made on 8 December 2016, 14 December 2016

and 15 December 2016 respectively.

(3) Based on the SGX announcement of the Offer Information Statement made on 30 December 2016.

Outlook

31

The Trust

Management Strategy and Outlook

• Five master leases are to expire in 4Q 2017(1), three of which are Sponsor related properties.The Sponsor has indicated its commitment to exercise its options to renew the three masterleases at prevailing market rents in line with those of similar properties in similar locations.

• On the divestment of 218 Pandan Loop announced on 5 December 2016(2), the Managertargets to complete the transaction by 31 March 2017.

• For the Commodity Murabaha Facility and Convertible Sukuk maturing in August 2017 andSeptember 2017 respectively, the Manager has commenced discussions with the lenders andtargets to complete the refinancing exercise ahead of their final maturity dates. The Managerwill also continue to explore new ways to diversify funding sources and improve the Trust’sborrowings maturity profile.

• Despite the subdued outlook for the global economy and the Singapore industrial propertymarket, the Manager will continue to stay proactive in managing the lease expiry profile andmaintain rigorous marketing and leasing efforts to increase the Trust’s portfolio occupancy.The Manager is also very focused on actively managing the Trust’s cost and remainscommitted to enhancing the Trust’s portfolio to deliver a stable income stream to theUnitholders.

Sources:(1) 33 & 35 Penjuru Lane, 18 Gul Drive, 51 Penjuru Road, 21 Joo Koon Crescent and 6 Woodlands Loop.

(2) SGX announcement of the proposed divestment of 218 Pandan Loop was made on 5 December 2016.

32

Contents



I. Key Highlights 5

V. Outlook 29




33

4Q 2016 Non-Shari’ah Income

Sabana REIT gives out its non-Shari’ah income on a quarterly basis, to charitable causes

Organisation: Singapore Kadayanallur Muslim League

Purpose: Sabana REIT’s 4Q 2016 non-Shari’ah income amounting to S$30,582 will bedirected to support their rescue and relief efforts for the victims of Cyclone Vardahwhich took place on 12 December 2016 in Chennai and the north coastal districtTiruvallur in Tamil Nadu.

The cyclone has affected millions of people, seriously disrupted communications,leveled hundreds of homes, destroyed paddy crops and swept away livestock. Thus,there is dire need of food, dry ration, sleeping mat, blankets etc., to sustain theaffected families.

The charitable cause below is the chosen beneficiary of Sabana REIT’s 4Q 2016 non-Shari’ah income:

The total amount of S$30,582 allocated to the organisation above represents approximately 0.1% of Sabana REIT’s 4Q 2016 gross revenue.

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Contents



I. Key Highlights 5

V. Outlook 29




Distribution Details

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Distribution period DPU (cents)

1 October 2016 to 31 December 2016 0.88

Distribution Timetable

Last date that the Units are quoted on a “cum”- distribution basis 31 January 2017

Ex-date 1 February 2017, 9am

Books closure date 3 February 2017, 5pm

Distribution payment date 28 February 2017

Disbursement of non-Shari’ah income to approved charities 28 February 2017 or earlier

Sabana REIT Code: MIGU

Sabana Real Estate Investment Management Pte. Ltd.151 Lorong Chuan#02-03 New Tech ParkSingapore 556741

www.sabana-reit.com

Tel: +65 6580 7750Fax: +65 6280 4700

For enquiries, please contact:

Mr Bobby TayChief Strategy Officer & Head of Investor RelationsTel: +65 6580 7750Email: [email protected]

Ms Cassandra SeetManager, Investor RelationsTel: +65 6580 7857Email: [email protected]

Thank you

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