< NEWS
Singapore, 6 August 2019 – Sasseur Real Estate Investment Trust (“Sasseur REIT”; 砂之船房地产投资信托), which owns retail outlet malls in China, recorded a distributable income of S$19.2 million for the quarter ended 30 June 2019 (“2Q 2019”), exceeding its projection of $17.3 million by 10.5%, its manager Sasseur Asset Management Pte. Ltd. (“SAMPL”) announced today. Sasseur REIT’s distribution per unit (“DPU”) for the period came in at 1.608 Singapore cents.
The annualised distribution yield based on the total DPU was 8.2% at the closing unit price of S$0.79 on 28 June 2019, and 8.1% at the IPO offering price of S$0.80, exceeding the IPO projected yield of 7.8% for FY2019.
The four outlet malls owned by Sasseur REIT generated sales of RMB 1.03 billion for 2Q 2019, RMB 136.7 million or 15.4% higher than Q2 20182. EMA rental income (excluding straight-line rental accounting adjustment) at S$ 29.1 million was in-line with projection3.
For the first half 2019, the four outlet malls generated total sales of RMB2.23 billion, which is 19.9% higher than previous corresponding period. The EMA rental income (excluding straight-line rental accounting adjustment) for the first half 2019 was S$60.0 million, which is also 1.1% higher than projection.
The commendable growth was mainly due to growth of outlet industry, together with Sasseur REIT’s unique ‘double destination’ shopping positioning as both an outlet and lifestyle experiential mall, its emphasis on an unique art-commerce business model, as well as seasonal sales promotions which boosted sales.
Portfolio occupancy rate for 2Q 2019 remained stable at 95.8%, highlighting the successful partnership between tenants and the entrusted manager of the outlet malls under the EMA rental income model.
After the successful acquisition of Hefei shop units, the new tenants, e.g. indoor zoo, all performed very well and contributed stable rental income. On top of that, total VIP members of the four malls have reached 1.14 million as of 30 June 2019, which is 39% higher than end of 2018.
Mr Vito Xu, Chairman of SAMPL, said, “Due to our unique business model and best-in-class management system, sales at Sasseur Outlets grew by 15.4% in 2Q 2019 despite slower macro economy growth. This is testament to our quality product and service offerings that meet the needs of our customers. We will continue to monitor customer preferences and behaviour to adapt to changing consumer trends and increase sales at all Outlets for the rest of the year.”
Mr Anthony Ang, CEO of SAMPL, said, “Although the second quarter is seasonally a period with lower customer traffic for the retail industry, our DPU continues to outperform projections which bodes well for Sasseur’s overall performance this year. 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.”
Singapore, 6 August 2019 – Sasseur Real Estate Investment Trust (“Sasseur REIT”; 砂之船房地产投资信托), which owns retail outlet malls in China, recorded a distributable income of S$19.2 million for the quarter ended 30 June 2019 (“2Q 2019”), exceeding its projection of $17.3 million by 10.5%, its manager Sasseur Asset Management Pte. Ltd. (“SAMPL”) announced today. Sasseur REIT’s distribution per unit (“DPU”) for the period came in at 1.608 Singapore cents.
The annualised distribution yield based on the total DPU was 8.2% at the closing unit price of S$0.79 on 28 June 2019, and 8.1% at the IPO offering price of S$0.80, exceeding the IPO projected yield of 7.8% for FY2019.
The four outlet malls owned by Sasseur REIT generated sales of RMB 1.03 billion for 2Q 2019, RMB 136.7 million or 15.4% higher than Q2 20182. EMA rental income (excluding straight-line rental accounting adjustment) at S$ 29.1 million was in-line with projection3.
For the first half 2019, the four outlet malls generated total sales of RMB2.23 billion, which is 19.9% higher than previous corresponding period. The EMA rental income (excluding straight-line rental accounting adjustment) for the first half 2019 was S$60.0 million, which is also 1.1% higher than projection.
The commendable growth was mainly due to growth of outlet industry, together with Sasseur REIT’s unique ‘double destination’ shopping positioning as both an outlet and lifestyle experiential mall, its emphasis on an unique art-commerce business model, as well as seasonal sales promotions which boosted sales.
Portfolio occupancy rate for 2Q 2019 remained stable at 95.8%, highlighting the successful partnership between tenants and the entrusted manager of the outlet malls under the EMA rental income model.
After the successful acquisition of Hefei shop units, the new tenants, e.g. indoor zoo, all performed very well and contributed stable rental income. On top of that, total VIP members of the four malls have reached 1.14 million as of 30 June 2019, which is 39% higher than end of 2018.
Mr Vito Xu, Chairman of SAMPL, said, “Due to our unique business model and best-in-class management system, sales at Sasseur Outlets grew by 15.4% in 2Q 2019 despite slower macro economy growth. This is testament to our quality product and service offerings that meet the needs of our customers. We will continue to monitor customer preferences and behaviour to adapt to changing consumer trends and increase sales at all Outlets for the rest of the year.”
Mr Anthony Ang, CEO of SAMPL, said, “Although the second quarter is seasonally a period with lower customer traffic for the retail industry, our DPU continues to outperform projections which bodes well for Sasseur’s overall performance this year. 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.”
