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Sasseur Reit Q4 DPU of 1.999 Singapore cents beats forecast

SASSEUR Reit has posted a fourth-quarter distribution per unit (DPU) of 1.999 Singapore cents, 28.1 per cent higher than the forecasted DPU of 1.561 Singapore cents.

For the three months ended Dec 31, distributable income was S$23.6 million, also 28.1 per cent above forecast.

Sasseur Reit's net property income, listed as entrusted management agreements rental income, was S$31.2 million, 1.6 per cent above forecast despite a softening Chinese yuan.  

DPU for the full year ended 2018 was 5.128 Singapore cents, 12.6 per cent above the 4.554 Singapore cents DPU forecast. This comprised a DPU of 3.541 cents declared for the second half of 2018, and 1.587 cents paid for the period from March 28, 2018 to June 30, 2018.

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In the absence of entrusted management agreements, a kind of minimum rental guarantee that will be in place till the end of 2019, Sasseur Reit's fourth-quarter DPU would be 1.404 Singapore cents, and the full-year DPU would be 3.990 Singapore cents. 

Portfolio occupancy rate for the fourth quarter improved to 95.2 per cent from 94.4 per cent in the third quarter as more tenants were signed up and tenant mix adjusted to suit consumer preferences.

Vito Xu, chairman of the Reit manager, said: "China's softening economic growth has generally resulted in slower sell-through rate of branded products in full price stores; this increased supply for outlets. In a slower economic environment, customers also actively look for bargains and this has benefited Sasseur's business. Sasseur's outlets have therefore been able to offer more choices and better value-for-money purchases to their customers, boosting our outlet sales."

Net asset value per unit was 90.33 Singapore cents as at Dec 31.

The Reit's annualised distribution yield based on the full-year DPU was 9.4 per cent at the closing unit price of S$0.71 on Feb 18, as well as 8.4 per cent at the IPO offering price of S$0.80.

Going forward, Sasseur Reit will switch its distribution payments from a semi-annual to a quarterly basis.