Sasseur REIT reported 1Q19 rental income beat IPO forecasts

China yuan coins

Sasseur REIT reported Monday its first quarter rental income under its entrusted management agreement (EMA), was 153.3 million yuan, beating the forecast from its IPO prospectus by 3.2 percent.

In Singapore dollar terms EMA rental income was S$30.9 million, beating the IPO forecast by 2.4 percent, the China outlet-mall REIT said in a filing to SGX.

The distribution per unit (DPU) was 1.656 Singapore cents, beating the IPO forecast by 9.3 percent, Sasseur REIT said. Based on the unit price of S$0.775 as of end-March, the annualized distribution yield for the quarter was 9.3 percent, it said.

The portfolio occupancy rate for the quarter rose to 96.1 percent from 95.2 percent in the fourth quarter on continued efforts to improve the tenant mix, the REIT said.

“We are delighted that Sasseur REIT continues to deliver key performance metrics which exceed our IPO forecasts for the first quarter of 2019,” Vito Xu, chairman of Sasseur Asset Management, the REIT’s manager, said in the statement.

“China’s economy and urban household disposable income per capita continue to grow. We are confident that our unique art-commerce business model blending outlet shopping with art-inspired architecture and family-themed lifestyle will continue to appeal to the middle-class,” he added.

Sasseur REIT, which listed on SGX in March 2018, has a portfolio of four retail outlet malls in China.

 

While you’re here, we’re hoping you can help us out.

Shenton Wire has been providing you with quick news and market analysis. Help us continue to bring you the news you’ve come to expect and to expand our reach beyond Singapore.

Your monthly contribution will directly fund our journalism.

S$2     S$4       S$8

S$18       S$28       S$88

You can check your existing account here. You can also contact us about other contribution levels or for corporate subscriptions and syndication queries.