- Sasseur REIT (SGX:CRPU) reported 1Q23 DPU of 1.849 cents (+1.5% y-o-y), which is slightly above our expectations.
- Sasseur REIT retained S$0.9m in 1Q23 for working capital purposes (1Q22: S$2.5m). Payout ratio was 96.2% in 1Q23.
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Recovery begins as China reopens.
- Sasseur REIT's rental income increased 7.7% y-o-y in 1Q23. Fixed component increased 3% y-o-y while variable component surged 17.9% y-o-y in tandem with the rise in outlet sales of 17.9% y-o-y. China’s reopening and pent-up consumer spending boosted outlet sales.
- Sasseur REIT also benefitted as inter-city travel resumed. Outlet sales at Chongqing Liangjiang, Chongqing Bishan and Hefei grew 20.3%, 17.8% and 17.0% y-o-y respectively. Overall outlet sales of RMB1,292.6m were 7% above pre-pandemic levels.
Portfolio occupancy eased 0.6ppt q-o-q 96.6% in 1Q23.
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- Occupancy for Hefei Outlets eased 2.3ppt q-o-q to 95.9% due to exit of non-performing F&B tenants, which will be replaced by new F&B tenants in 2Q23.
- Kunming has adjusted its trade mix in 2022 and is expected to benefit from the recovery in domestic tourism in 2023.
Completed refinancing in Mar 23.
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