Sasseur REIT has reported a distribution per unit (DPU) of 1.512 cents for the 3QFY2023 ended Sept 30, 17.7% lower y-o-y.
This brings its 9MFY2023 DPU to 4.834 cents, 7.9% lower y-o-y, mainly due to the depreciation of the renminbi (RMB) against the Singapore dollar (SGD) and higher finance costs. On a like-for-like basis, the REIT’s DPU would have been at 5.355 cents, 2.0% higher y-o-y.
3QFY2022 distributable income had also included a one-off non-recurring tax refund of $2.1 million relating to Chongqing Liangjiang Outlet. Without the tax refund, the REIT’s DPU for the 3QFY2023 and 9MFY2023 would have declined by 9.7% y-o-y and 4.9% y-o-y respectively.
Entrusted management agreement (EMA) rental income for the 3QFY2023 rose by 6.5% y-o-y to RMB161.9 million ($30.7 million) boosted by growth in variable component income due to the sales rebound y-o-y. The REIT also saw an annual 3% y-o-y escalation of fixed component income.
EMA rental income for the 9MFY2023 rose by 7.5% y-o-y to RMB487.9 million due to increases in fixed component and variable component incomes.
In SGD terms, EMA rental income for the 3QFY2023 fell by 1.5% y-o-y to $30.3 million due to the depreciation of the RMB against the SGD while 9MFY2023 EMA rental income fell by 1.5% y-o-y to $92.9 million.
Total outlet sales for the 3QFY2023 rose by 15.8% y-o-y to RMB1.11 billion while 9MFY2023 total outlet sales rose by 18.9% y-o-y to RMB3.37 billion.
Portfolio occupancy as at Sept 30 stood at 97.9%, marking a record high since the REIT’s initial public offering (IPO). Weighted average lease expiry (WALE) stood at 2.4 years by net lettable area (NLA) and 1.4 years by gross revenue.
As at Sept 30, the REIT’s gearing stood at 25.4%, down from 26.2% a quarter ago. This is the REIT’s lowest gearing since IPO and the lowest among the Singapore REITs (S-REITs). Its interest coverage ratio stood at 4.0x.
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As at Sept 30, the REIT's sponsor has 17 operating outlets in China with another upcoming outlet in 2024. The REIT's net asset value (NAV) per unit stood at 85 cents as at the same period.
Unitholders will receive their DPUs on Dec 27.
As at 9.19am, units in Sasseur REIT are trading 1.5 cents lower or 2.22% down at 66 cents.
