SASSEUR Real Estate Investment Trust (Sasseur Reit), Sasseur Reit: CRPU +1.74% which owns outlet malls in China, posted a 3.8 per cent rise in its distribution per unit (DPU) to S$0.01831 for the third quarter ended Sep 30, from S$0.01764 a year ago.

 

In a Q3 2021 business update on Friday (Nov 12), the manager said that the higher DPU was a result of lower interest expenses, tax and trust expenses at the Reit level, together with a favourable yuan to Singdollar exchange rate.

 

The Reit' s rental income under its entrusted management agreements (EMAs) was S$31.4 million, up 3.9 per cent from S$30.3 million a year earlier. After adjusting for a straight-lining of an annual 3 per cent escalation of the fixed component of EMA rental income, it would be S$33.3 million.

 

Distributable income rose 9.4 per cent year on year to S$23.2 million, from S$21.2 million in Q3 2020.

 

The DPU will be paid out on Dec 28, following books closure on Dec 13.

 

The manager has elected to retain S$1 million of distributable income this quarter for asset enhancement initiatives and working capital requirements.

 

Sasseur Reit' s portfolio occupancy rate for its 4 outlets in China rose to 93.7 per cent for Q3 2021, up from 92.5 per cent in the previous quarter.

 

The manager also noted that the 4 outlets generated total sales of S$211 million during Q3 2021, representing a 12 per cent growth quarter on quarter.

 

Chief executive of the Reit manager Cecilia Tan said that the Reit' s proactive asset management strategies, which include revitalising tenant mix, asset upgrading and careful curation of offerings, delivered an encouraging set of results this quarter.

 

" In September, we held our most anticipated mega anniversary sale event of the year, where outlets operated overnight until 6 am on the first day, with hourly flash sales activities to keep shoppers excited throughout the night. This event spanning over more than 2 weeks contributed to approximately half of the quarter' s total sales," she said.