China-based outlet mall operator Sasseur REIT announced in its business update that its 3QFY2022 ended September distribution per unit (DPU) came in at 1.838 cents some 0.4% higher than the previous year.
This came on the back of a 1.2% y-o-y increase in distributable income to $23.5 million.
This was despite its entrusted manager agreement (EMA) rental income coming in at $30.8 million, 2.1% lower than the previous year. This was due to a 3.3% y-o-y drop in the variable component, while the fixed component cushioned the drop with a 3.0% y-o-y increase.
The group attributed its decline in variable income to sporadic Covid-19 outbreaks in China from August to September, leading to temporary closures of two outlets and reduced shopper traffic, as well as extreme weather in both Chongqing Liangjiang Outlets and Chongqing Bishan Outlets in August which resulted in shortened opening hours in order to reduce the city’s energy consumption.
Total outlet sales for the quarter came in 3.5% lower from 3QFY2021 at RMB962.2 million ($185.1 million), while portfolio occupancy was the highest in four years, surpassing pre-Covid-19 occupancy at 96.9%.
Weighted average lease expiry (WALE) by net lettable area for the quarter stood at 2.7 years, slightly higher than 2.5 years in the previous quarter.
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Units in Sasseur REIT last traded at 71 cents on Nov 10.
Photo: The Edge Singapore/ Albert Chua
