- Sasseur REIT (SGX:CRPU)'s total rental income for FY24 slipped 0.4% y-o-y to S$124.5mil due to a 3.9% y-o-y decline in outlet sales and a weaker RMB against the S$. Rental is 98% of our forecast.
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- We anticipate low-single-digit tenant sales growth in FY25e, assuming no disruptions from unforeseen events like heatwaves. Lower interest expenses, aggressive discounts, and continued brand and product mix enhancements will support FY25e earnings.
The Positives
Recovery in sales in 2H24.
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- Sasseur REIT expects sales to grow at a low-single-digit rate in FY25e, supported by more aggressive stimulus measures from the central government, including a 50-bps mortgage rate cut and consumption vouchers in Shanghai.
Cost of borrowing to continue trending down.
- Read more at SGinvestors.io.
