SINGAPORE (Aug 6): The manager of Sasseur REIT reported 2Q19 DPU came in at 1.608 cents, exceeding projection by 10.5%.
This came on the back of the REIT recording a distributable income of $19.2 million, exceeding its projection of $17.3 million by 10.5%
As at end June, the REIT’s portfolio comprises four retail outlet malls in China, namely Chongqing, Bishan, Hefei and Kunming.
The four outlet malls owned by Sasseur REIT generated sales of RMB 1.03 billion for 2Q19, RMB 15.4% higher than 2Q18 . EMA rental income (excluding straight-line rental accounting adjustment) at $29.1 million came in line with projection.
The REIT attributed the increase in sales to the growth of outlet industry, together with the REIT’s unique ‘double destination’ shopping positioning as both an outlet and lifestyle experiential mall, its emphasis on a unique art-commerce business model, as well as seasonal sales promotions which boosted sales.
Portfolio occupancy rate for 2Q19 remained stable at 95.8%.
Anthony Ang, CEO of the manager, adds, “Despite the on-going trade tension between US and China, our outlet sales in China has not been impacted by external trade factors as it is largely fuelled by domestic consumption. For the third quarter, we are cautiously optimistic that sales and footfall will pick up again in view of Sasseur’s major overnight annual promotion events that will be held in September.”
Sasseur REIT listed on SGX in May last year with an IPO offering price of 80 cents.
As at 9.20am on Tuesday, units in Sasseur REIT are trading at 80 cents.
