However, in local currency terms, EMA rental income displayed an encouraging growth of 8% y-o-y. This growth was driven by an in-built 3% annual escalation in rents and a substantial 20.8% increase in the variable income component. The latter was supported by an impressive 20.5% surge in 1H23 outlet sales.
CGS-CIMB Research analyst Lock Mun Yee is keeping “add” on Sasseur REIT (SGX:CRPU
) at a lower target price of 95 cents from $1 previously after the group released its 1HFY2023 ended June results, indicating a mix of challenges and positive developments.
During the six-month period, the REIT’s 1HFY2023 entrusted management agreement (EMA) rental income totaled $63.5 million, marking a y-o-y decrease of 3.6%. The decline can be primarily attributed to an 8.7% depreciation of the Chinese renminbi (RMB) against the Singapore dollar (SGD).
