Sasseur Reit records DPU of 1.587 S cents in maiden earnings

SASSEUR Reit (real estate investment trust) announced a distribution per unit (DPU) of 1.587 Singapore cents in its first financial results after its mainboard listing on March 28 this year.

The Reit's DPU - recorded from March 28 to June 30 - was 4.6 per cent higher than what was forecast in its prospectus, as was its distributable income to unitholders, which at S$18.74 million was higher than the S$17.91 million forecast.

For the period under review, net property income - recorded as "entrusted management agreement" in Sasseur Reit's earnings - was S$32.29 million, 3 per cent higher than its S$31.35 million forecast.

The Reit clocked total sales of S$193.3 million, jumping 40.6 per cent on a proforma basis compared to the same year-ago period, mainly attributable to higher outlet sales registered at the four portfolio properties at its the Chongqing, Bishan, Hefei and Kunming outlet malls.

"Despite the second quarter being typically a seasonally slower quarter for the industry, Sasseur Reit performed very well in sales; putting us on track to achieving our forecast sales targets for the full fiscal year. The sales at Chongqing Outlet mall continues to out-perform forecast as a more mature mall, while sales at the younger outlet malls at Bishan, Hefei and Kunming continue to gain traction with strong growth," said the manager's chief executive Anthony Ang.

Sasseur Reit's initial portfolio consists of four retail outlet malls in China, with a combined net lettable area of 304,573.1 square metres.

The current distribution will be paid out on or before Sept 30, 2018.

The manager intends to distribute 100 per cent of the distributable income to unitholders until Dec 31, 2019, thereafter lowering it to at least 90 per cent of the Reit's distributable income. The Reit said the distribution will be subject to "regular review to ascertain the best interests of the Reit and its unitholders".