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Just it' s name alone is enough to make investors and even Superheroes run for the hills............................
The stock is suffering from disinterest in S-chip, brick and mortar retail and maybe anything listed in Singapore, which presents an opportunity for those with some longer term funds to get in at a good 9% yield.
any thoughts on why this company continues to be underwater since IPO? apparently results have been decent so far and they give a higher than peers' yield of 8-9%. management' s track record is pristine as well - is it purely a s-chip sentiment issue?
Expect min 6c div and so yield is at least 9.1% at current price. Ideal timing for entry to take adv of div payout time which should be near around Mar and Sep.
Sector is booming and so business should continue to do well. Good luck!
Sector is booming and so business should continue to do well. Good luck!
camry8151 ( Date: 20-Nov-2018 13:00) Posted:
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Price seems to be reversing...positive result out soon?
camry8151 ( Date: 26-Nov-2018 11:52) Posted:
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Why is this stock price dropping so much lately?
Any news?
Any news?
SASSEUR REIT: Transforming underutilized malls into lifestyle hubs
" We revamp underutilized malls. We became a leading outlet operator because we have unique artistic DNA," said the Chairman and founder of Sasseur Group, Xu Rong Can at an interview withNextInsight.https://www.nextinsight.net/story-archive-mainmenu-60/940-2018/12547-sasseur-reit-transforming-underutilized-malls-into-lifestyle-hubs
reason for the higher margin of safety is warranted is because, before IPO, they will have already maxed out their valuation of the property.. simple as that...
camry8151 ( Date: 20-Nov-2018 13:00) Posted:
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3 Reasons You Should Buy This REIT With an 8.6% Yield
Real Estate Investment Trusts (REITs) have seen a steep sell-off since the beginning the year.
Higher interest rates and concerns over geopolitical issues are two of the reasons why investors have been shunning REITs lately. However, declining share prices are actually good news for long-term investors presents the opportunity to stock up on undervalued REITs which are offering an attractive yield.
Sasseur Real Estate Investment Trust (SGX: CRPU) is one such REIT. Sasseur REIT is a China-focused REIT that has a portfolio of four outlet malls. The REIT was listed only at the start of this year and is, therefore, one of the newer REITs in Singapore. There are three reasons why I believe it can make a good addition to your portfolio.
Propensity for growth
There are two main ways that a REIT can deliver distribution growth to unitholders, namely growth through acquisition or internal growth through better performance from existing assets. Sasseur REIT has the potential to do both.
Sasseur REIT earns its rental income through an entrusted management agreement (EMA), which has a fixed and variable component. The variable component is dependent on tenant sales from its four outlet malls. In the latest quarter, tenant sales in all four of its outlet malls increased from the corresponding period last year. Impressively, the REIT&rsquo s Kunming and Hefei outlet tenant sales increased by 90.1% and 60.3% year-on-year, respectively.
The increase in tenant sales shows that the Chinese consumer&rsquo s appetite for discounted branded apparel is still strong even as the Middle Kingdom&rsquo s economy slows amid global economic concerns. If the sales continue to increase in the future, Sasseur REIT&rsquo s rental income will benefit due to the variable component of its EMA contract.
Additionally, Sasseur REIT has the financial capacity to make acquisitions that can increase its distribution per unit (DPU) in the future. The REIT&rsquo s gearing (a measure of debt level where a lower figure is better) stands at just 32.5%, which is well below the 45% regulatory limit set for Singapore REITs. Its low gearing provides it with the debt headroom to fund future acquisitions. The REIT currently has two assets where it has the right of first refusal and another three assets in its sponsor&rsquo s pipeline that could be potential acquisition candidates.
Resilient assets
It is possible that investors are concerned about the slowing Chinese economy and how the US-Chin trade war will impact REITs with assets in the Middle Kingdom. Thankfully for Sasseur REIT, its assets are likely to experience minimal impact from these two overarching concerns.
Outlet malls differ from the normal shopping malls as they sell heavily discounted branded goods. Demand for these products tends to stay strong even in the economy slows down.
In addition, Sasseur REIT&rsquo s management believes that the outlet mall space is still growing and is undersupplied, giving the REIT plenty of room for future growth.
There are also certain government initiatives that are designed to keep domestic demand in China up amid the escalating trade war. For example, China&rsquo s government is keen to reduce import tariffs on textile goods and to enforce the official overseas free-spending limit of RMB5000. If so, these measures will reduce China middle-class population&rsquo s volume of purchased goods from overseas and force them to make their purchases domestically, which is good for outlet malls in China.
Attractive valuation
Last but certainly not least is Sasseur REIT&rsquo s attractive valuation.
The REIT was listed earlier this year at S$0.80 per unit . At that time, units were in high demand with a 3.7 times oversubscription for the public tranche of units on offer. However, Sasseur REIT&rsquo s unit price has dipped sharply since its listing and now trades at just S$0.70 per piece.
The REIT is trading at relatively cheap valuations, in my view.
At this price, it spots an annualised yield of 8.6%, among the highest in Singapore and trades at 13% discount to its book value. With the REIT poised for growth and valuations at a considerable discount, it certainly looks like a great time to add units of this undervalued REIT to your portfolio now.
https://www.fool.sg/2018/11/20/3-reasons-you-should-buy-this-reit-with-an-8-6-yield/
Sasseur REIT attends inaugural China (Chongqing)-Singapore Financial Summit and SGX-Beijing Forum
During the China (Chongqing)-Singapore Financial Summit, Sasseur REIT was mentioned by Mr. Ravi Menon, Managing Director of Monetary Authority of Singapore, in his keynote address as one of the &ldquo new channels for cross-border financing&rdquo . Several other speakers from banks and government organisations also cited Sasseur REIT during various sessions of the Summit. As a demonstration project under the Financial Services priority sector of the CCI, the US$322 million IPO listing of Sasseur REIT on the mainboard of the Singapore Stock Exchange (&ldquo SGX&rdquo ) in March 2018, was of special significance for being the first cross-border REIT from the Western Region of China listed in Singapore.
Dr. Wang Jun, Non-Executive Director of Sasseur Asset Management and Managing Director of L Catterton Asia, commented, &ldquo We are honoured to be Sasseur Group&rsquo s strategic investor since 2015 and Sasseur REIT&rsquo s cornerstone investor during the IPO. It has been a rewarding journey for L Catterton Asia as Sasseur Group has grown from operating two outlet malls in 2015 to become the largest outlet mall operator in China today. We believe that Sasseur Group and Sasseur REIT still have a long runway for growth as the outlet mall industry in China is a sunrise industry.&rdquo
http://investor.sasseurreit.com/newsroom/20181115_184212_CRPU_7CV9BE9ZEEDNMYHV.1.pdf
YCH Group Embarks on Comprehensive Collaboration with Sasseur Group in Optimising Supply Chain Management for Retail
&ldquo The new digital economy has spurred a creative reinvention of consumer&rsquo s purchasing habits over the past few years. With our unique supply chain and data analytics capabilities, Sasseur Group will be able to create a seamless and rich customer experience across all active channels and touchpoints, whether the customers are in the physical retail store or browsing via their smartphones,&rdquo said Dr Robert Yap, Executive Chairman of YCH Group.
&ldquo We are excited to partner with YCH Group, a leading player in supply chain and data analytics. Through the use of innovative digital interactive touchpoints, our aim is to create a shopping experience that is unique, cohesive and enjoyable for our customers. Ultimately, this will attract more customers and better sales performance at our outlet malls,&rdquo said Mr. Xu Rongcan, Founder and Chairman of Sasseur Group and Chairman of Sasseur Asset Management Pte. Ltd., the manager of Sasseur REIT.
http://sasseurreit.listedcompany.com/newsroom/20181111_204337_CRPU_5NAQZHWW7VRD1L9Z.1.pdf
This shorter WALE works both ways ... if revisions are beneficial, then a shorter WALE is better. I' m beginning to see why this Sasseur REIT is different than other retail REITs. It will be interesting to see how things pan out next year.
camry8151 ( Date: 13-Nov-2018 11:09) Posted:
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No reaction despite pretty decent recent results and yield is now quite attractive. Wonder why sentiment for this stock is so poor. I would thought the strong backers behind the company would support the share price.
Maybank Kim Eng research report on Sasseur REIT.
BUY
Target Price: S$0.90
Another strong quarter 4Q18 should be even better
Strong 3Q18 results, maintain BUY
Sasseur REIT reported another strong set of earnings with DPU of SGD1.542cts, 4.5% ahead of its IPO projection. Sales growth momentum was strong in 3Q18 at between 19-91% YoY, outpacing our 3-40% growth forecasts for its four outlet malls we expect this to pick up into the seasonally-strongest 4Q. Our forecasts and DDM-based SGD0.90 TP (WACC: 10.7%, LTG: 3.0%) are unchanged. With downside protection from its risk-absorbing EMA structures, the risk to DPU lies to the upside given stronger-than-expected sales performance so far. BUY.
Portfolio sales jumped 36% YoY
Total portfolio sales jumped 35.7% YoY to CNY1.13b (SGD222.1m) or 7.9% ahead of its IPO projection. Its NPI or rental income from embedded entrusted management agreements (EMAs) was SGD29.1m or 0.7% ahead of its forecast, while its DPU of SGD1.542cts was 4.5% ahead of the SGD1.476cts guidance. This is a seasonally strong quarter for sales - typically at 25% of the full year according to management, with higher sales per unit and per customer of fashion items in the autumn-winter season. We expect the momentum to pick up in 4Q to achieve 30% of full-year. 3Q18 DPU would have met 25.7% of our FY18 estimate provided for by the EMA structure resulting in an annualised DPU yield of 8.9%.
Strong sales momentum across all four malls
All four outlet malls reported stronger performance ahead of its IPO projections. These were helped by successful anniversary activities in Sep 2018, which achieved first-day record sales growth of between +44% YoY to +139% YoY for the outlets. The sales growth during the quarter for the Hefei and Kunming outlets at +60.3% YoY and +91.1% YoY, respectively exceeded our 35% YoY and 40% YoY estimates. Meanwhile, the Chongqing outlets in their 11th year of operation, delivered 18.5% YoY sales growth, up from +16.5% YoY in the first quarter (28 Mar to 30 Jun). Portfolio occupancy was steady at 94.4%, with transitional vacancies arising from its annual tenant reshuffling efforts in Sep. We see steady improvement in occupancies on the back of stronger tenant sales growth.
Sponsor pushing ahead on growth
Its sponsor, with a strengthening management track record, continues to eye opportunities to implement its &lsquo N+1&rsquo super outlet business model into other third-party underperforming malls. As such, the Changsha outlet is targeted to open in 4Q, and it&rsquo s amongst others in an expanding portfolio that could add to its medium-term ROFR pipeline.
https://factsetpdf.maybank-ke.com/PDF/117247_CN__39635798dcce47ddb6588e18dab7b567.pdf?
BUY
Target Price: S$0.90
Another strong quarter 4Q18 should be even better
Strong 3Q18 results, maintain BUY
Sasseur REIT reported another strong set of earnings with DPU of SGD1.542cts, 4.5% ahead of its IPO projection. Sales growth momentum was strong in 3Q18 at between 19-91% YoY, outpacing our 3-40% growth forecasts for its four outlet malls we expect this to pick up into the seasonally-strongest 4Q. Our forecasts and DDM-based SGD0.90 TP (WACC: 10.7%, LTG: 3.0%) are unchanged. With downside protection from its risk-absorbing EMA structures, the risk to DPU lies to the upside given stronger-than-expected sales performance so far. BUY.
Portfolio sales jumped 36% YoY
Total portfolio sales jumped 35.7% YoY to CNY1.13b (SGD222.1m) or 7.9% ahead of its IPO projection. Its NPI or rental income from embedded entrusted management agreements (EMAs) was SGD29.1m or 0.7% ahead of its forecast, while its DPU of SGD1.542cts was 4.5% ahead of the SGD1.476cts guidance. This is a seasonally strong quarter for sales - typically at 25% of the full year according to management, with higher sales per unit and per customer of fashion items in the autumn-winter season. We expect the momentum to pick up in 4Q to achieve 30% of full-year. 3Q18 DPU would have met 25.7% of our FY18 estimate provided for by the EMA structure resulting in an annualised DPU yield of 8.9%.
Strong sales momentum across all four malls
All four outlet malls reported stronger performance ahead of its IPO projections. These were helped by successful anniversary activities in Sep 2018, which achieved first-day record sales growth of between +44% YoY to +139% YoY for the outlets. The sales growth during the quarter for the Hefei and Kunming outlets at +60.3% YoY and +91.1% YoY, respectively exceeded our 35% YoY and 40% YoY estimates. Meanwhile, the Chongqing outlets in their 11th year of operation, delivered 18.5% YoY sales growth, up from +16.5% YoY in the first quarter (28 Mar to 30 Jun). Portfolio occupancy was steady at 94.4%, with transitional vacancies arising from its annual tenant reshuffling efforts in Sep. We see steady improvement in occupancies on the back of stronger tenant sales growth.
Sponsor pushing ahead on growth
Its sponsor, with a strengthening management track record, continues to eye opportunities to implement its &lsquo N+1&rsquo super outlet business model into other third-party underperforming malls. As such, the Changsha outlet is targeted to open in 4Q, and it&rsquo s amongst others in an expanding portfolio that could add to its medium-term ROFR pipeline.
https://factsetpdf.maybank-ke.com/PDF/117247_CN__39635798dcce47ddb6588e18dab7b567.pdf?
SASSEUR REIT: What' s our best quarter, why trade war has no impact, etc
The REIT' s CEO, Anthony Ang, replied: " Generally speaking, sales for the first quarter account for about 25% of the year' s. Second quarter is 20%, third quarter 25%, and the four quarter, 30%. In other words, you will have the best quarter coming up, hopefully."The unit recently traded lower, at 68 cents, so the annualised yield is close to 9%.
Would the current high yield be threatened by the current US-China trade war?
The answer is no, because Sasseur REIT' s business is all about Chinese middle-class consumption, said the Head of Investor Relations, Compliance and Risk Management, Chen Zhen.
In addition, he pointed out how regulations have recently changed in favour of a business like Sasseur:
1. China is implementing income tax reform to stimulate domestic consumption (SeeReuters story).
2. China has recently introduced an e-commerce lawthat reins in traders (daigou) -- a network that has a growing and significant impact on the retail industry -- who buy goods from overseas for sale in China through unofficial and previously unregulated channels.
3. China is increasingly enforcing the official overseas tariff-free spending limit of RMB5,000 per person -- which will curtail the buying of branded goods from overseas by Chinese travellers.
4. China has reduced import tariffs which narrowed the price differential between branded goods bought overseas and those sold in China (such as outlet malls of Sasseur REIT).
https://www.nextinsight.net/story-archive-mainmenu-60/940-2018/12548-sasseur-reit-what-s-our-best-quarter-why-trade-war-may-bring-benefits-etc
Sharp eyes, laksaman57!
The shorter WALE is so that the operator can phase out non-performing brands faster and bring in new brands that are more appealing to the consumers. The constant rejuvenation of the outlet mall is key to achieve sales growth as the operator charges commission on sales and a portion of the DPU is pegged to sales growth.
The shorter WALE is so that the operator can phase out non-performing brands faster and bring in new brands that are more appealing to the consumers. The constant rejuvenation of the outlet mall is key to achieve sales growth as the operator charges commission on sales and a portion of the DPU is pegged to sales growth.
laksaman57 ( Date: 12-Nov-2018 12:05) Posted:
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Worth noting > Weighted Average Lease Expiry (WALE) in year 2019 will be
48.4% by Net Lettable Area and
74% by Gross Revenue
See slide-14 of
http://infopub.sgx.com/FileOpen/Sasseur%20REIT_3Q_2018%20Results%20Presentation.ashx?App=Announcement& FileID=533322
48.4% by Net Lettable Area and
74% by Gross Revenue
See slide-14 of
http://infopub.sgx.com/FileOpen/Sasseur%20REIT_3Q_2018%20Results%20Presentation.ashx?App=Announcement& FileID=533322
SASSEUR REIT: Confusion over L Catterton' s stake cleared
There' s a gross misinterpretation by some in the market of an 11 Oct announcement on private equity firm L Catterton Asia' s sale of a partial stake in the Sponsor of Sasseur REIT.No, L Catterton Asia didn' t sell units in the REIT itself.
And since L Catterton Asia didn' t sell any units, this media headline may convey the wrong impression: &ldquo Sasseur REIT loses PE firm L Catterton Asia as substantial unitholder&rdquo
A good write-up from NI, read the full article here: https://www.nextinsight.net/story-archive-mainmenu-60/940-2018/12491-sasseur-reit-confusion-over-l-catterton-s-stake-cleared
The REIT Manager' s clarification on L Catterton Group' s reduction in deemed interest in the REIT. L Catterton Group reduced its stake in the Sponsor from 22.8% to between 10% to 15%, as its shareholding dropped below the 20% threshold, L Catterton Group was not deemed to have an interest in any Units held by the Sponsor. Therefore L Catterton Group' s deemed interest in the REIT fell from 58.86% to 1.36%. Notably, L Catterton Group still owns a substantial stake in the Sponsor and they are still holding the 1.36% direct interest in the REIT since IPO, which is in line with them saying that they still believe in the long-term growth prospects of Sasseur and the outlet mall industry in China.
http://investor.sasseurreit.com/newsroom/20181015_194721_CRPU_1P2T0ME9QNCTWJJP.1.pdf
http://investor.sasseurreit.com/newsroom/20181015_194721_CRPU_1P2T0ME9QNCTWJJP.1.pdf
Eeeeeks........ China stock............run for your lives.
Jamesbond007 ( Date: 13-Oct-2018 14:31) Posted:
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