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Sasseur REIT 2Q21 DPU rises 6.7% y-o-y to 1.614 cents

Atiqah Mokhtar
Atiqah Mokhtar • 3 min read
Sasseur REIT 2Q21 DPU rises 6.7% y-o-y to 1.614 cents
1H21 DPU totalled 3.373 cents, up 18.5% y-o-y.
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Sasseur REIT has posted distributable income of $21.7 million for the 2QFY2021 ended June, up 19.7% y-o-y.

This brings 1HFY2021 distributable income to $45.4 million, up 32.8% y-o-y.

Sasseur REIT, which owns four retail outlets in China, saw 47.9% y-o-y growth in sales for the 1HFY2021 to RMB 2.03 billion ($425 million).

EMA Rental Income for 2Q 2021 totalled RMB 145.8 million, a 3.5% increase from RMB 140.9 million in 2Q 2020, as its variable component increased 4.8% to RMB 40.3 million from RMB 38.5 million.

Sasseur REIT's manager has elected to retain 10% of distributable income for 2Q2021, resulting in a distribution per unit (DPU) of 1.614 Singapore cents, 6.7% higher y-o-y. For the 1HFY2021, DPU totalled 3.373 cents, 18.5% higher than 2.846 Singapore cents a year ago.

See also: Broker's Digest: Venture Corp, Grand Venture Technology, Sasseur REIT, iX Biopharma, SGX

On a q-o-q basis total sales in 2QFY2021 fell 21.7% lower, which the manager attributes to seasonality factors, given that 1Q sales are typically higher due to Chinese New Year and Sasseur’s Spring Sale.

“The strong set of results was mainly due to active leasing activities which increased the representation of highly sought-after brands, improvement in operating performance and lower interest expenses following the completion of loan refinancing exercise in September 2020. The better performance was underpinned by the REIT’s resilient business model and China’s economic recovery from the COVID-19 pandemic,” says Cecilia Tan, CEO of Sasseur REIT’s manager.

“We will continue to optimize asset performance through carefully curated promotional programmes and targeted Asset Enhancement Initiative (AEI) at the individual outlets to enhance traffic flow, increase shopper appeal and experience. On the acquisition front, we continue to review opportunities in the Sponsor’s first right of refusal and pipeline assets. Sasseur REIT has ample financial capacity and we will seize the opportunity to activate an acquisition when the time is right,” she adds.

Chairman of Sasseur REIT's manager Vito Xu, says “We have seen encouraging results for the first half of the year, as our outlets continue to see sustained business recovery. Although there are some new Covid-19 cases in late July, given China’s resolve and strict approach to tackle the spread of the virus, we are confident that the situation will be well managed."

The REIT’s portfolio occupancy across the four outlets stood at 92.5% in 2Q2021. The four outlets stepped up promotional efforts and active customer engagement leading to higher VIP membership of 2.37 million as of June, 5.3% higher as compared to March 31.

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Sasseur REIT’s aggregate leverage stood at 27.8% as at June 30, providing ample debt headroom for potential acquisitions. Both onshore and offshore debts will mature in March 2023, with average debt maturity of 1.7 years as at June 30.

Units in Sasseur REIT closed 1.5 cents or 1.56% lower at 94.5 cents on August 12.

Photo: Albert Chua/The Edge Singapore

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