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Business Times
3 days ago
- Business
- Business Times
Sasseur Reit posts 3.1% lower H1 DPU of S$0.03055
[SINGAPORE] The manager of Sasseur Real Estate Investment Trust (Reit) on Thursday (Aug 14) said that its distribution per unit (DPU) for the first half of FY2025 fell 3.1 per cent to S$0.03055, from S$0.03153 in the same period a year prior. Rental income under the Reit's entrusted management agreement (EMA) model stood at 336.2 million yuan (S$59.9 million) in H1 2025, up 2.2 per cent year on year from 329 million yuan, underpinned by a solid rebound in second-quarter sales. The fixed component increased 3 per cent year on year, while the variable component rose marginally by 0.3 per cent, supported by 0.8 per cent year-on-year growth in portfolio outlet sales. In Singapore dollar terms, EMA rental income declined 1.6 per cent year on year to S$61.3 million from S$62.3 million, primarily due to the 3.7 per cent year-on-year depreciation of the yuan. Distributable income stood at S$42.4 million for the period, down 0.6 per cent from S$42.7 million in H1 2024. The distribution will be paid on Sep 26, with a record date of Sep 12. The initial portfolio of the Reit consists of four retail outlet mall assets located in Chinese cities such as Chongqing, Kunming and Hefei, with a combined net lettable area (NLA) of 310,241 square metres. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The Reit's portfolio occupancy in the second quarter stood at 98.5 per cent. Its Chongqing Liangjiang outlet remained fully occupied, while its Kunming outlet recorded a 99.9 per cent occupancy level following asset enhancement works completed in 2024. The manager said on Thursday that this is due to active asset management initiatives, including tenant mix optimisation, strategic collaborations with leading brands, and enhanced loyalty engagement through tailored VIP services and promotions. Aggregate leverage stood at 25.8 per cent, with an interest coverage ratio of 4.7 times as at Jun 30. Its weighted average cost of borrowings for the period ended Jun 30 was 4.8 per cent. The Reit's weighted average lease expiry by NLA is 1.7 years as at Jun 30. On Feb 19 and Jun 6, Sasseur Reit obtained two tranches of five-year unsecured interest-bearing loans from a wholly owned subsidiary of the sponsor. The first offshore sponsor loan tranche was valued at 430 million yuan, and the second at 508 million yuan. Additionally, on May 14, the manager of the Reit said its wholly owned subsidiary Kunming Sasseur Commercial Management secured its maiden onshore green loan of 308 million yuan from OCBC China for a tenure of 10 years from the first utilisation date. Vito Xu, chairman of Sasseur Asset Management, the manager of Sasseur Reit, said that he remains 'cautiously optimistic' about the second half of 2025, even though China's gross domestic product expanded 5.3 per cent year on year in H1 2025, closely tracking the government's full-year growth target of around 5 per cent. 'While macroeconomic uncertainties remain, China's stable growth and policy support provide a favourable backdrop (for the Reit),' he added. Units of Sasseur Reit ended Wednesday 0.7 per cent or S$0.005 higher at S$0.695.
Business Times
3 days ago
- Business
- Business Times
Sasseur Reit posts 3.1% lower Q2 DPU of S$0.03055
[SINGAPORE] The manager of Sasseur Real Estate Investment Trust (Reit) on Thursday (Aug 14) said that its distribution per unit (DPU) for the second quarter of FY2025 fell 3.1 per cent to S$0.03055, from S$0.03153 in the same period a year prior. Rental income under the Reit's entrusted management agreement (EMA) model stood at 336.2 million yuan (S$60 million) in H1 2025, up 2.2 per cent year on year from 329 million yuan, underpinned by a solid rebound in second-quarter sales. The fixed component increased 3 per cent year on year, while the variable component rose marginally by 0.3 per cent, supported by 0.8 per cent year-on-year growth in portfolio outlet sales. In Singapore dollar terms, EMA rental income declined 1.6 per cent year on year to S$61.3 million from S$62.3 million, primarily due to the 3.7 per cent year-on-year depreciation of the Chinese yuan. Distributable income stood at S$42.4 million for the period, down 0.6 per cent from S$42.7 million in H1 2024. The distribution will be paid on Sep 26. The Reit's portfolio occupancy in Q2 stood at 98.5 per cent. Its Chongqing Liangjiang outlet remained fully occupied, while its Kunming outlet recorded a 99.9 per cent occupancy level following asset enhancement works completed in 2024. Vito Xu, chairman of Sasseur Asset Management, the manager of Sasseur Reit, said that he remains 'cautiously optimistic' about the second half of 2025, even though China's gross domestic product expanded 5.3 per cent year on year in H1 2025, closely tracking the government's full-year growth target of around 5 per cent. 'While macroeconomic uncertainties remain, China's stable growth and policy support provide a favourable backdrop (for the Reit),' he added. Units of Sasseur Reit ended Wednesday 0.7 per cent or S$0.005 higher at S$0.695.
