Sasseur Reit Q1 DPU up 1.5% to S$0.01849 after retention
Wu Xinyi
Sasseur Real Estate Investment Trust (Sasseur Reit), which owns outlet malls in China, posted a distribution per unit (DPU) of S$0.01849 for the first quarter ended Mar 31 – a 1.5 per cent increase from the previous year.
This comes after a retention of 3.8 per cent or S$900,000 of distributable income for working capital purposes, according to a bourse filing on Wednesday (May 10).
The manager of the real estate investment trust (Reit) attributed the DPU – the highest it has recorded for Q1 since its listing – to strong sales performance. Outlet sales for the quarter rose 17.9 per cent on the year to 1.3 billion yuan (S$249.2 million), boosted by pent-up consumer spending.
Rental income under the Reit’s entrusted management agreement model fell 2.1 per cent to S$33.1 million for Q1 2023, with gains from the 7.7 per cent rise in rental income in yuan eroded by the depreciation of the currency against the Singapore dollar.
Distributable income fell 4 per cent to S$23.7 million, from S$24.7 million previously.
The distribution will be paid out on Jun 27, after the record date of Jun 12.
Portfolio occupancy rose slightly to 96.6 per cent, from 95.4 per cent in Q1 2022, driven by an increase in occupancy in Chongqing Bishan.
Weighted average lease expiry stood at 2.1 years by net lettable area. To optimise tenant mix, short leases were chosen to adapt to the fast-changing consumer preferences in China and provide flexibility in replacing non-performing tenants.
The Reit maintained a prudent aggregate leverage of 25.7 per cent.
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The manager is optimistic that the Reit’s entrusted management agreement model positions it well to capture China’s post-pandemic recovery in consumer spending.
Units of the Reit closed 2 per cent or S$0.015 lower at S$0.72 on Tuesday.
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