Sasseur Reit posts 18.8% rise in Q4 DPU to 1.935 S cents

SASSEUR Real Estate Investment Trust (Sasseur Reit), which owns outlet malls in China, posted an 18.8 per cent rise in its distribution per unit (DPU) to 1.935 Singapore cents for the fourth quarter ended Dec 31, 2020, from 1.629 cents a year ago.

The Reit's rental income under its entrusted management agreements (EMAs) was S$34.7 million, up 23 per cent from S$28.2 million the year before.

Excluding straight-line adjustments, EMA rental income stood at S$32.3 million, up 2.5 per cent from S$31.5 million the previous year. The increase was due to the appreciation of yuan against the Singapore dollar by 4.7 per cent in Q4 2020 compared with Q4 2019.

Distributable income for Q4 rose 19.7 per cent on the year to S$23.3 million from S$19.5 million.

Sasseur Reit's portfolio occupancy level remained stable at 93.5 per cent in the fourth quarter, the manager said.

For the full year ended December, DPU was 0.2 per cent higher at 6.545 Singapore cents, from 6.533 cents the year before.

Distributable income was up 1 per cent to S$78.7 million from S$77.9 million for FY2019. This was mainly due to the "rapid rebound of the Chinese economy" in the second half of 2020, proactive asset management actions taken by the entrusted manager, lower tax expenses and a strengthening yuan.

EMA rental income for the full year was 6.1 per cent higher at S$125.2 million, from S$118 million a year ago. Excluding straight-line adjustments, EMA rental income was S$115.8 million, down 5.2 per cent from S$122.1 million a year ago.

The distribution will be paid out on March 26, following books closure on March 12.

Units of Sasseur Reit closed at S$0.84 on Friday, up 0.5 Singapore cent or 0.6 per cent.