Sasseur Reit Q3 DPU rises 3.8% to S$0.01831

SASSEUR Real Estate Investment Trust (Sasseur Reit), CRPU which owns outlet malls in China, posted a 3.8 per cent rise in its distribution per unit (DPU) to S$0.01831 for the third quarter ended Sep 30, from S$0.01764 a year ago.

In a Q3 2021 business update on Friday (Nov 12), the manager said that the higher DPU was a result of lower interest expenses, tax and trust expenses at the Reit level, together with a favourable yuan to Singdollar exchange rate.

The Reit's rental income under its entrusted management agreements (EMAs) was S$31.4 million, up 3.9 per cent from S$30.3 million a year earlier. After adjusting for a straight-lining of an annual 3 per cent escalation of the fixed component of EMA rental income, it would be S$33.3 million.

Distributable income rose 9.4 per cent year on year to S$23.2 million, from S$21.2 million in Q3 2020.

The DPU will be paid out on Dec 28, following books closure on Dec 13.

The manager has elected to retain S$1 million of distributable income this quarter for asset enhancement initiatives and working capital requirements.

Sasseur Reit's portfolio occupancy rate for its 4 outlets in China rose to 93.7 per cent for Q3 2021, up from 92.5 per cent in the previous quarter.

The manager also noted that the 4 outlets generated total sales of S$211 million during Q3 2021, representing a 12 per cent growth quarter on quarter.

Chief executive of the Reit manager Cecilia Tan said that the Reit's proactive asset management strategies, which include revitalising tenant mix, asset upgrading and careful curation of offerings, delivered an encouraging set of results this quarter.

"In September, we held our most anticipated mega anniversary sale event of the year, where outlets operated overnight until 6 am on the first day, with hourly flash sales activities to keep shoppers excited throughout the night. This event spanning over more than 2 weeks contributed to approximately half of the quarter's total sales," she said.

Units of Sasseur Reit closed 0.6 per cent or S$0.005 higher at S$0.86 on Thursday (Nov 11).

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