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Sasseur REIT’s income exceeded $18 million more than its IPO projection.
Sasseur Real Estate Investment Trust (Sasseur REIT) registered a distributable income of $19.7 million in the first quarter of 2019, exceeding its $18 million IPO projection by 9.3 percent.
With this, distribution per unit (DPU) stood at 1.656 Singapore cents, also 9.3 percent above forecast.
In an SGX filing, Sasseur REIT’s manager revealed that Sasseur REIT’s four outlet malls in China generated total sales of RMB1.2 billion for Q1 2019, or 10.1 percent higher than the projection for Q1 2019 and 24 percent higher than Q1 2018.
“The higher sales resulted to better-than-expected entrusted management agreements (EMA) rental income, particularly the variable component which outperformed projection by 9.4 percent,” it said.
Portfolio occupancy rate also grew from 95.2 percent in Q1 2018 to 96.1 percent in Q1 2019, due to continued efforts to optimise the tenant mix.
Sasseur REIT was named the top-performing REIT on the Singapore Exchange for Q1 2019 as its total return of 25 percent surpassed the 15.7 percent average for the top 20 best-performing S-REITs.
“We are delighted that Sasseur REIT continues to deliver key performance metrics which exceed our IPO forecasts for Q1 2019. We are confident that our unique art-commerce business model blending outlet shopping with art-inspired architecture and family-themed lifestyle will continue to appeal to the middle-class,” said Vito Xu, chairman of the REIT’s manager.
“This will lead to stronger sales for FY2019. With Sasseur REIT adopting a quarterly payout from Q1 2019, I am pleased that unitholders will now enjoy more frequent distribution,” he added.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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