In my previous blog, I showed that S-REITs as a group have delivered exceptionally returns compared to the Singapore stock market. But take note of the important qualifier “as a group”. The returns of S-REITs shown in that blog reflect the performance of a diversified index of all S-REITs. The performance of a single REIT or even a small group of REITs can be very different from that of a well-diversified portfolio. The story of Sabana REIT serves as a cautionary tale of what can happen if you put all your eggs in one reit basket.

The full name for Sabana REIT is Sabana Shari’ah Compliant Industrial Real Investment Trust but for brevity, I will just call it Sabana REIT.

Sabana REIT is an industrial REIT, one of many that dominate the S-REITs space in numbers and market capitalization. Industrial REITs own properties such as factories, warehouses, logistic buildings and business parks. They