Sabana REIT reports on-forecast Net Property Income and Distributable Income for 3Q2011

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1 SABANA SHARI AH COMPLIANT INDUSTRIAL REAL ESTATE INVESTMENT TRUST (a real estate investment trust constituted on 29 October 2010 under the laws of the Republic of Singapore) Sabana REIT reports on-forecast Net Property Income and Distributable Income for 3Q2011 Distribution Per Unit ( DPU ) of 2.14 cents and annualised DPU of 8.49 cents for 3Q2011. On track to deliver annualised DPU of 8.63 cents for FY2011 Achieved S$50.1 million gain in annual revaluation of its IPO portfolio Obtained investment grade credit rating from Standard & Poor s Announced acquisitions of four yield-accretive properties worth S$132.3 million - portfolio size to cross S$1.0 billion mark upon legal completion Highlights (S$ 000) Actual Forecast Variance (%) Net Property Income 16,559 16, Distributable Income 13,641 13, Distribution Per Unit (DPU) (cents) Annualised DPU (cents) Annualised Distribution Yield - IPO Price at S$ % 8.09% - - Current Price at S$ % 9.38% - Singapore, 19 October 2011 Sabana Real Estate Investment Management Pte. Ltd., the Manager of Sabana Shari ah Compliant Industrial Real Estate Investment Trust ( Sabana REIT ), today announced a distributable income of S$13.6 million for the period 1 July 2011 to 30 September Based on the 636,145,601 units 2 entitled for distribution, Sabana REIT s distributable income translates into a DPU of 2.14 Singapore cents for the quarter, which meets the quarterly forecast DPU. The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch ( HSBC ), is the sole financial adviser for the initial public offering of units in Sabana Shari ah Compliant REIT (the Offering ). HSBC, United Overseas Bank Limited and Daiwa Capital Markets Singapore Limited are the joint global coordinators, issue managers, bookrunners and underwriters for the Offering. HSBC, United Overseas Bank Limited and Daiwa Capital Markets Singapore Limited assume no responsibility for the contents of this announcement. 1 Based on the last traded price of S$0.905 per unit as at 18 October The number of units in issue as at 30 September 2011 of 635,069,362, and the units to be issued to the Manager by 31 October 2011 as partial consideration of manager s fees incurred for the quarter ended 30 September 2011 of 1,076,239.

2 Commenting on the results, Mr Kevin Xayaraj, CEO and Executive Director of the Manager said, Our portfolio continues to deliver stable distribution thanks to the defensive characteristics of our portfolio and rental structure. With our 3Q2011 DPU in line with our forecast, our cumulative DPU performance is on track to achieve our Forecast 3 DPU of 8.63 Singapore cents for the financial year ending 31 December Portfolio updates As of 30 September 2011, the value of Sabana REIT s portfolio had appreciated by S$50.1 million from S$851.2 million a year ago. This equates to 5.9% increase in property values in the one-year period. The new valuations, reflected in the financial statements of Sabana REIT for the quarter ended 30 September 2011, were conducted by independent valuer DTZ Debenham Tie Leung (SEA) Pte Ltd. As of 30 September 2011, approximately 44.0% of the portfolio by GFA is in the high-tech industrial sector. The next significant segment is warehouse and logistics space accounting for 28.7%. Chemical warehouse & logistics space represented 17.6%, while general industrial space accounted for the remaining 9.7% of the total GFA. The average land lease of these properties is 40.4 years. In terms of gross revenue, the main revenue driver in Sabana REIT s portfolio was the high-tech industrial sector, which made up 58.8% of Sabana REIT s gross revenue for the quarter. Warehouse and logistics space contributed 19.2% and chemical warehouse and logistics space contributed 16.3%. The remaining 5.7% of revenue came from general industrial space. During the quarter, Sabana REIT announced the following proposed acquisitions: 39 Ubi Road 1 The first acquisition announced since its IPO. This is a part five/part sixstorey light industrial building, currently undergoing alteration and renovation for another two-storey extension. The purchase agreement for the proposed acquisition was signed on 11 August for S$32.0 million and the property will have a GFA of approximately 136,195 square feet when the extension is completed; 3A Joo Koon Circle A two-storey building with mezzanine floor and a three-storey factory building. It has a GFA of about 217,580 square feet, and the purchase agreement was signed on 9 September 2011 for $40.2 million; 2 Toh Tuck Link A six-storey warehouse with a GFA of about 180,735 square feet, the purchase agreement was signed on 9 September 2011 for S$39.8 million; and 21 Joo Koon Crescent A three-storey factory building with ancillary office with a GFA of about 99,575 square feet. The purchase agreement was signed on 29 September 2011 for S$20.3 million. The proposed acquisitions of the four properties, at a total value of S$132.3 million are expected to attain legal completion in the fourth quarter of These acquisitions, to be financed by debt, will be yield-accretive. Upon their successful completions, Sabana REIT s portfolio will have 19 properties with combined GFA of approximately 3.9 million square feet and asset under management of over S$1.0 billion. 3 Based on figures for the Forecast Year 2011 as stated in the IPO prospectus

3 Commenting on Sabana REIT s expanding portfolio, Mr Xayaraj said, The local market demand for industrial properties with attractive building specifications and locations remains healthy. Our maiden acquisitions are within our investment strategy to create stable income streams that are Shari ah compliant and yield-accretive for our Unitholders. They will also improve asset and tenant diversification, as well as increase Sabana REIT s weighted lease tenure. We will continue to grow our portfolio to build long-term value for them. Capital management Sabana REIT has a 3-year secured Commodity Murabaha Facility of up to S$256.0 million, of which S$220.6 million has been drawn down. As of 30 September 2011, Sabana REIT s aggregate leverage is at 23.8%. Debt headroom is S$238.7 million based on 39.0% gearing. Upon the completion of the proposed acquisitions of 39 Ubi Road 1, 3A Joo Koon Circle, 2 Toh Tuck Link and 21 Joo Koon Crescent worth S$132.3 million, Sabana REIT s aggregate leverage is expected to increase to 33.5%. This will be within the aggregate leverage limit of up to 60.0%, as set out in the guidelines in Appendix 6 of the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore. Sabana REIT was assigned a BBB- long-term corporate credit rating and axa- ASEAN scale rating with a stable outlook from Standard & Poor s Rating Services (S&P s) in July Donations of non-shari ah compliant income For the period under review, Sabana REIT recorded a non-shari ah compliant income of S$40.2k, or 0.2% of its net property income. Sabana REIT will be donating this amount to the Singapore Red Cross Society for the South East Asia Flood Appeal. The impact to DPU is negligible. The total non-shari ah compliant income reported in the previous quarter was S$41.6k, out of which, S$13.9k was donated to the Singapore Kadayanallur Muslim League, an organisation dedicated to provide the local Indian Muslim community with social and financial assistance, and S$27.7k was donated to the a.l.i.v.e (Learning Islamic Values Everyday) programme at al Ansar Mosque for children who require financial and other assistance. Continued recognition in the investor community Sabana REIT continues with its winning streak with its sixth win in October 2011, when it was awarded the Most Outstanding Islamic REIT by the Kuala Lumpur Islamic Finance Forum ( KLIFF ). KLIFF, which recognised the REIT for its efforts and contributions in educating investors and raising awareness on Islamic Finance, an annual event that offers Islamic Finance practitioners a platform to discuss the latest developments and challenges in the industry. This is one of the first times that an investment product from Singapore has won at the KLIFF Islamic Finance Awards. Mr Xayaraj said, This win is an encouragement for us. The Manager is heartened that Sabana REIT is not only capturing attention from investors from all backgrounds, but is playing a crucial role in raising awareness of Islamic finance in the region. Distribution to Unitholders Unitholders can expect to receive their DPU for the period 1 July 2011 to 30 September 2011 on 29 November The closure of Sabana REIT s transfer books and register of Unitholders will take place at 5pm on 28 October 2011.

4 Outlook The global economy continues to be weak. According to Ministry of Trade and Industry (MTI), Singapore s economic growth for the rest of 2011 could slow down due to softening global economic conditions. MTI expects 2011 growth to be around 5.0%, down from the earlier forecast range of 5% to 6%. According to a report by DTZ Research, average capital value of industrial space in Singapore continued to rise but at a slower rate in 3Q2011 while average rents for industrial space remained unchanged in 3Q2011. Mr Xayaraj said, While the global economic situation remains fragile, our team will continue to work hard so that Sabana REIT s portfolio continues to generate regular and stable distribution to our Unitholders. === END === For enquiries, please contact: Sabana Real Estate Investment Management Pte. Ltd. Bobby Tay Chiew Sheng Chief Strategy Officer & Head of Investor Relations DID: bobby.tay@sabana.com.sg Grace Chen Investor Relations Manager DID: grace.chen@sabana.com.sg

5 ABOUT SABANA SHARI AH COMPLIANT REIT Sabana Shari ah Compliant REIT is a real estate investment trust constituted on 29 October 2010 under the laws of Singapore. Sabana Shari ah Compliant REIT is 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. The initial property portfolio of Sabana Shari ah Compliant REIT comprises 15 industrial properties located across Singapore. 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. Sabana Real Estate Investment Management Pte. Ltd. is the manager of Sabana Shari ah Compliant REIT. For further information on Sabana Shari ah Compliant REIT, please visit Important Notice This announcement is for information only and does not constitute an offer, invitation or solicitation of securities in Singapore or any other jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. The value of the Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager, HSBC Institutional Trust Services (Singapore) Limited, as trustee of Sabana Shari ah Compliant REIT, Freight Links Express Holdings Limited, the Joint Bookrunners or any of their respective affiliates. An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request that the Manager redeem or purchase their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. This announcement is not an offer or sale of the Units in the United States. The Units have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration except pursuant to an exemption from, or in a transaction not subject to, registration under the Securities Act. Any public offering of the Units to be made in the United States will be made by means of a prospectus that may be obtained from the Manager or Sabana Shari ah Compliant REIT and that will contain detailed information about Sabana Shari ah Compliant REIT, the Manager and its management, as well as financial statements. Sabana Shari ah Compliant REIT does not intend to register any portion of the offering in the United States or to conduct a public offering of securities in the United States. Accordingly, the Units are being offered and sold outside the United States (including to institutional and other investors in Singapore) in reliance on Regulation S under the Securities Act. This announcement is not to be distributed or circulated outside of Singapore. Any failure to comply with this restriction may constitute a violation of United States securities laws or the laws of any other jurisdiction.