Sasseur REIT *Official* (SGX:CRPU)

[juelim]

What's with the regular Stabilizing Buy-In by DBS to keep the share price at 80c? Should one sell at the IPO price in case the buy-in limit is reached and the price drops thereafter?

 

[Mergui219067]

The fear as always.
My bet on buying more Cromwell huat.

What's with the regular Stabilizing Buy-In by DBS to keep the share price at 80c? Should one sell at the IPO price in case the buy-in limit is reached and the price drops thereafter?

 

[kelvinn]

The current price looks attractive. Can buy or will self pwn?

 

[Bumblebee Man]

Anyone holding this? It's statement seems pretty good with low gearing.

 

[micromousez]

The current price looks attractive. Can buy or will self pwn?

if you had bought around end Jan when u ask this qns , you are up 20% liao

 

[micromousez]

Anyone holding this? It's statement seems pretty good with low gearing.

https://forums.hardwarezone.com.sg/...vestment-masterplan-2018-19-a-5734435-23.html

 

[spiritGate]

Now not a good price. I already bought at 64 cents and sold at 75 cents

 

[5408854088]

Sasseur Reit closes China malls amid virus spread
https://www.businesstimes.com.sg/companies-markets/sasseur-reit-closes-china-malls-amid-virus-spread

 

[SpeedingBullet]

cld be an incredible distressed play like Sabana, need to time this right

 

[XGZ1503]

Just hold it for the time being

 

[Shion]

Sasseur REIT's DPU up 4.7% to 6.53 cents in 2019

Sasseur REIT's DPU up 4.7% to 6.53 cents in 2019

https://sbr.com.sg/commercial-property/more-news/sasseur-reits-dpu-47-653-cents-in-2019



Distributable income also rose 4.7% YoY to $77.9m.

Sasseur Real Estate Investment Trust (Sasseur REIT) saw its distribution per unit (DPU) inch up 4.7% to 6.53 cents in 2019 from 6.24 cents in 2018, according to a press release.

Distributable income also rose 4.7% YoY to $77.9m from $74.5m, whilst its entrusted management agreement (EMA) rental income dipped 1.6% YoY to $122.1m from $124m in 2018.

The annualised distribution yield based on the total DPU for the period was 7.4% at the closing unit price of $0.885 on 31 December 2019, and 8.2% at the IPO offering price of $0.800 was well above the yield of 7.8% forecasted at its IPO in March.

As for its Q4 results, DPU dropped 18.5% YoY from 2 cents to 1.63 cents due to lower income tax expense in Q4 2018, resulting from utilisation of available tax losses in that quarter. Its one-off adjustment in Q4 2018 also lead to statutory reserves being set aside during Q2 and Q3 2018.

Distributable income also fell 17.4% YoY to $19.5m over the same period, whilst EMA rental income grew 0.9% YoY in Q4 to $31.5m.

This growth was driven by combined outlet sales of $279.3m (RMB1.4b) for Q4 2019, 3.4% YoY higher than in 2018. Portfolio occupancy rate for the quarter edged up to 96% from 95.4% in Q3 2019, due to a more active leasing strategy and focused tenant management. Total VIP members for the four malls in the REIT portfolio rose 93% to 1.58 million as of 31 December 2019.

 

[Shion]

Sasseur REIT malls re-open with 129% surge in sales

Sasseur REIT malls re-open with 129% surge in sales

https://sbr.com.sg/commercial-property/news/sasseur-reit-malls-re-open-129-surge-in-sales



The first-day sales of its Bishan outlet mall soared 228% to $390,910.

Sasseur REIT saw a 129% YoY surge in sales on the first days of the reopening of its four Outlet malls, according to a press release. Their first day sales hit a total of $2.33m (RMB11.46m).

Its Bishan outlet mall recorded the highest rise in sales at 228% to $390,910 (RMB1.92m). It is followed by Kunming (171%) and Chongqing (132%) outlet malls, recording first day sales of $386,840 (RMB1.9m) and $1.15m (RMB5.64m), respectively. The Hefei outlet mall sales grew 57% to $407,200 (RMB2m).

These malls were closed between 44 to 49 days since 26 and 27 January in an effort to control the COVID-19 outbreak in China. The Kunming outlet reopened on 11 March, whilst the Hefei outlet resumed on 13 March. The Chongqing and Bishan malls returned on 15 March.

“Whilst there will be impact to Q1 2020 sales performance due to the closure of approximately seven weeks, the sponsor will ensure Sasseur REIT continue to receive the fixed component in accordance with the Entrustment Management Agreement and variable component, which is pegged to actual sales,” Sasseur Asset Management’s CEO Anthony Ang said.

Further, all customers, tenants and employees will be required to wear face masks when they enter the malls, and will also have their temperature screened.

 

[Shion]

Sasseur REIT records 'strong first-day sales' of $9.5 mil after China's re-opening

Sasseur REIT records 'strong first-day sales' of $9.5 mil after China's re-opening

https://www.theedgesingapore.com/news/reits/sasseur-reit-records-rmb472-mil-after-china-re-opening

SINGAPORE (May 4): Sasseur Real Estate Investment Trust (Sasseur REIT) has reported “strong first-day sales” of RMB47.2 million (S$9.5 million), for its annual Spring Sales. This is 411% higher than its first-day reopening sales registered in March.

Possibly due to pent-up demand during the Covid-19-induced lockdown, Sasseur REIT’s various outlet malls located in Chongqing, Bishan, Hefei, and Kunming reported a 129% increase in sales in 2020, compared to 2019.

The malls were closed between 44 to 49 days in late January to prevent the spread of COVID-19 in China. They were re-opened progressively from March 11.

The REIT’s annual Spring Sales are usually held for two to three weeks in April across its four outlet malls in China. Despite the slight delay this year due to Covid-19, all four malls’ shopper traffic has been uplifting, and “indicates a strong recovery with respect to outlet shopping,” says its statement released on May 4.

"The retail outlet industry has always been a reliable market for consumers to turn to during international economic downturns,” says Vito Xu, chairman of the manager.

“More than 90% of our customers are local residents rather than tourists, and the strong domestic demand generated by China's huge population base can quickly drive up our sales after the outbreak. The temporary closure period has allowed us to conduct extensive internal strategic and operational reviews,” he adds.

Shares in Sasseur REIT closed at 3.5 cents lower, or 4.8% down to 70 cents.

 

[thisislife]

wait for this before buying

 

[Shion]

Sasseur REIT posts 19.4% drop in 1Q20 DPU to 1.334 cents

Sasseur REIT posts 19.4% drop in 1Q20 DPU to 1.334 cents

https://www.theedgesingapore.com/capital/results/sasseur-reit-posts-194-drop-1q20-dpu-1334-cents

SINGAPORE (May 14): The manager of Sasseur Real Estate Investment Trust (Sasseur REIT) has declared a distribution per unit (DPU) of 1.334 cents for the 1Q20 ended March.

This quarter’s DPU, which fell 19.4% y-o-y, represents 100% of the total distributable income of $16.0 million, which fell 18.7% y-o-y.

Total outlet sales for 1Q20 fell 55.7% to RMB 534.5 million (S$106.8 million), due to the operational disruptions and temporary closures arising from the Covid-19 pandemic.

Entrusted Management Agreements (EMA) rental income fell 17.1% y-o-y to RMB 127.2 million (S$25.4 million) supported by the fixed component income of RMB 102.4 million. Under the EMA model, the fixed component income comprises a majority of the overall rental income, which helps provides stability to the EMA Rental Income despite the temporary closures.

Portfolio occupancy rate for 1Q20 dipped to 94.8% from 96.0% in 4Q19 due to lower occupancies at its Bishan and Hefei outlets.

Sasseur REIT’s balance sheet remains robust with gearing at 28.5% and healthy interest coverage ratio of 4.7 times. The recent relaxation of the gearing limit for Singapore Exchange-listed REITs – from 45% to 50% – provides Sasseur REIT with higher debt headroom and capital management flexibility to pursue growth through yield-accretive acquisitions of new assets.

The manager says it plans to enhance several of its assets during 2Q20, including repositioning its Chongqing Outlets as a lifestyle and shopping destination for both local consumers and tourists from other parts of China. Block B of Hefei Outlets will be repositioned into a sports themed shopping complex to increase shopper traffic between Blocks A and B.

As Sasseur REIT’s China-based assets were affected by the Covid-19 outbreak earlier than other S-REITs, the team’s efforts to drive marketing, online engagement and event organisation have helped to generate and retain customer interest.

In its outlook, the manager notes that China is also among the first countries to begin to recover and restart its economy since April 2020. Sasseur REIT is thus in a position to recover its performance from 2Q 2020 onwards.

“1Q 2020 has turned in a respectable performance despite the temporary closure period which resulted in malls suspending operations for up to seven weeks. We are very heartened to see an encouraging return of shoppers during our special reopening and the recent Spring Sales events,” says Vito Xu, chairman of the manager.

“The retail outlet industry is counter-cyclical, and hence continues to be more resilient against economic downturns. We look forward to further recovery of the domestic economy and a stronger performance for Sasseur REIT in the coming quarters,” he adds.

“Rental income in 1Q 2020 has been less impacted by the COVID-19 disruptions compared to other malls and REITs due to our Entrusted Management Agreement (“EMA”) rental income model,” says Anthony Ang, CEO of the manager.

“Supported by a strong team organising special events, our sales are recovering steadily and our VIP member base has increased despite the challenges brought on by COVID-19 outbreak. Going forward we will continue to maintain customer engagement and increase sales, through our online sales and social media platforms, as well as at our malls through multiple promotional events in the coming months,” he adds.

Units in Sasseur REIT closed flat at 72 cents on Wednesday prior to the announcement.

 

[Shion]

Sasseur REIT started at 'outperform' on upside potential and downside support

Sasseur REIT started at 'outperform' on upside potential and downside support

https://www.theedgesingapore.com/ca...perform-upside-potential-and-downside-support

SINGAPORE (June 11): KGI Securities is initiating coverage on Sasseur REIT with an “outperform” recommendation and a target price of 89 cents.

In a Thursday report, analyst Joel Ng says, “While Sasseur's 1Q20 DPU declined 19% y-o-y due to the lockdown measures in China, the REIT's long-term growth is underpinned by growing middle income spend, and in fact, may surprise on the upside going into 2H20 as government policies spur spending.”

Sasseur has a unique business model which offers investors upside potential with a variable component linked to 4.0% to 5.5% of total sales of its four outlet malls while providing downside protection with a fixed income component that increases 3.0% per annum until 2028.

Although structured as a REIT, Sasseur generates its rents mainly through a sales-based system whereby tenants pay an agreed percentage of their sales revenue to the sponsor. Sasseur, therefore, allows investors to invest into a proxy of China's outlet retail spending, the country's fastest-growing retail segment.

Additionally, its four outlet malls are located in the fast-growing Tier-2 cities of Chongqing, Hefei and Kunming. Demand is primarily driven by China's growing disposable income per capita.

E-commerce may be booming in China and causing disruption to traditional retail malls, but this should not be a threat to Sasseur as many shoppers are still reluctant to buy big-ticket items – items that cost above RMB1,000 (S$195.898) – online.

Hence, Sasseur has managed to thrive despite the disruption to the retail industry, as it ensures that all the products at its outlet malls are genuine, with harsh penalties imposed on merchants found selling counterfeit goods.

As Covid-19 cuts into overseas trips spending, domestic shopping by residents may potentially get a lift, helped by supportive government policies. China's Labour Day holidays in May 2020 showed the government's willingness to boost local consumption. Also, the CNY’s decline against the USD and JPY may incentivise shoppers to spend on domestic activities.

Sasseur’s outlet malls are not just for shopping. They are designed such that it offers shoppers a holistic experience, with activities such as an indoor zoo, children's playgrounds, and sports concepts, which also gives Sasseur an upper hand over e-commerce.

“As such, we believe that Sasseur's malls stand to recover quickly post the 44-49 days lockdowns of its malls in 1Q20,” says Ng.

While 1Q20 sales declined 56% y-o-y to RMB535 million and resulted in a 19% y-o-y drop in DPU, Sasseur has opted to pay 100% of distributable income and has not retained any cash. The analyst believes that this is only possible as the REIT's occupancy was stable at 95% (a slight decline of 1.2% pts), and shows the positive momentum that management sees going into 2Q20.

As at 11.45am, units in Sasseur REIT are trading at 79 cents or 0.9 times FY20 book with a dividend yield of 7.5%.

 

[5408854088]

Sasseur Reit cuts Q2 DPU by 6% after posting lower year-on-year sales
https://www.businesstimes.com.sg/co...u-by-6-after-posting-lower-year-on-year-sales

 

[5408854088]

The manager of Sasseur REIT has reported distribution per unit (DPU) of 1.764 cents for the 3QFY2020 ended Sept 30, up 7.6% from the 1.640 cents reported in 3QFY2019.

https://www.theedgesingapore.com/ca...er-dpu-3q-1764-cents-higher-ema-rental-income

 

[NewInvestor]

Blurb from Kim Eng....

*Sasseur REIT - Robust 3Q20 DPU as mall sales rebounded to nearly pre-Covid-19*

Maybank KE Retail Research

Sasseur REIT’s 3Q20 DPU rose 7.6% to 1.764¢ (100% distribution), taking 9M20 payout to 4.61¢ (-6%), in line to exceed full-year consensus forecast of 6.1¢.

EMA rental income fell 2.1% to Rmb152.6m due to lower variable income (-10.4%) arising from a slowdown in retail sales amid the Covid-19 pandemic but was cushioned by the fixed component of the leases (+2.5%).

Portfolio occupancy dipped 0.5ppt q/q to 93.1%, while weighted average lease-to-expiry was relatively stable at 2.8 years with 14.3%/48.5% of NLA due to expire in FY20/21.

Shopper traffic has rebounded strongly q/q to nearly pre-Covid-19 levels in tandem with the economic recovery in China, with four outlet malls generating total sales of Rmb1.1b in 3Q20, 32.9% higher than in 2Q20.

In addition, total VIP members of the four malls have increased to 1.96m as of end-Sep ‘20, 23.4% higher than at the end of 2019.

Aggregate leverage stood at 27.8% (-0.3ppt q/q) with average debt tenor of 2.49 years and all-in finance cost of 4.1%. There is no major refinancing required until Mar '23.

The phased completion of the AEI works at Chongqing outlet has shown positive initial result. In fact, its 3Q20 actual sales had surpassed the same period last year by 2.4%, and was especially strong during the Sep anniversary period.

The higher sales were partly attributed to the entry of new brands like Versace and Armani Exchange, and boosted by successful overnight sales event with attractive discounts in the outlets.

The manger expects to realise the full benefits of the AEI works when they are completed next year. This will come from increasing the leasable space to house more brands that will help improve both shoppers’ traffic and sales.

Overall, the global travel restriction has had no impact on the trust as its customer base comprises predominantly domestic Chinese consumers. Hence, it expects the performance of its portfolio to sustain in the coming months.

The China-based retail REIT trades at annualised 8.8% yield and 0.87x P/B.

 

[发哨子2020]

Sasseur Reit posts 18.8% rise in Q4 DPU to 1.935 S cents
https://www.businesstimes.com.sg/co...reit-posts-188-rise-in-q4-dpu-to-1935-s-cents