Sasseur REIT - DBS Research 2022-08-12: Strength In EMA Structure Shines Again

Sasseur REIT - Strength In EMA Structure Shines Again

Published:
SASSEUR REIT (SGX:CRPU) | SGinvestors.ioSASSEUR REIT (SGX:CRPU)
  • Sasseur REIT (SGX:CRPU) reported entrusted management agreement (EMA) rental income for 1H22 of S$63.5m (+1.6% y-o-y), dragged by lower operational performance in 2Q at S$29.7m (-1.7% y-o-y). Under EMA, rental income is structured to entail a 70% fixed rental that escalates at 3% p.a.
  • - Read this at SGinvestors.io -
  • Sasseur REIT's distributable income for 1H22 at S$45.1m (-0.7% y-o-y) was in line with our full year estimates.
  • DPU for 1H22 at S$0.0341 (+1.1% y-o-y) trends below our full year estimate due to income retention of S$3.3m. DPU excluding income retained for the period would have been in line with our full year DPU estimate of S$0.073.

Rampant lockdowns in 2Q22 impacted Sasseur REIT's variable EMA rental income

  • - Read this at SGinvestors.io -
  • The variable income component declined by 8.3% y-o-y in 1H22, which led to a 12.9% decline y-o-y in portfolio tenant sales in 2Q22. This coincided with the trough months of China’s lockdown during March to May. No rental rebates were provided to tenants in 1H22 despite lock down woes.
  • June saw a sharp uptick in tenant sales m-o-m following the exit of lockdowns, with momentum continuing into the month of July.

Occupancy managed a q-o-q increase amid lockdown headwinds

  • Read more at SGinvestors.io.




Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.




Geraldine WONG DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2022-08-12



Read also DBS's most recent report:
2024-02-22 Sasseur REIT - Spending Wariness Promising For Outlet Malls.

Previous report by DBS:
2023-02-20 Sasseur REIT - Recovery On Track As China Reopens.

Price targets by 3 other brokers at Sasseur REIT Target Prices.

Listing of research reports at Sasseur REIT Analyst Reports.

Relevant links:
Sasseur REIT Share Price History,
Sasseur REIT Announcements,
Sasseur REIT Dividends & Corporate Actions,
Sasseur REIT News Articles





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