Sasseur REIT Delivers 1.1% Growth In H1 2022 DPU
August 15, 2022 – Sasseur Real Estate Investment Trust announced a distribution per unit (DPU) for the first half of the year of 3.410 Singapore cents, up 1.1% year-on-year. This marked the REIT’s highest first half year DPU in four years.
The H1 2022 DPU comprises the second quarter 2022 DPU of 1.588 Singapore cents which dipped by 1.6% YoY, as distributable income (before retention of S$0.9 million) declined by 6.5% YoY to S$20.3 million, mainly due to the impact of widespread COVID-19 lockdowns in a few major Chinese cities from mid-March to end-May 2022. Restrictions on inter- city travels have weighed on consumer sentiments, leading to lower YoY shopper traffic and sales in 2Q 2022 at Sasseur REIT’s outlets, with the exception of the Chongqing Bishan Outlet which enjoyed stronger occupancy and sales during the quarter, following the completion of asset
On a quarter-on-quarter basis, the portfolio’s outlet sales in 2Q 2022 were 29.3% lower, due to retail seasonal factors such as the stronger Chinese New Year-induced consumer purchases in the first quarter of 2022.
Ms Cecilia Tan, CEO of SAMPL said, “Sasseur REIT has performed commendably in the first half of 2022, proving the robustness of its business model, despite a seasonally subdued quarter and ripple effects of the widespread lockdowns on our outlets’ sales. A key driver for the results was our proactive asset management efforts to optimise the tenant mix at the outlets, strengthen our retail and lifestyle offerings as well as implement targeted asset enhancement works.”
“In the second quarter of 2022, the REIT’s portfolio occupancy rate has already reverted to its pre- COVID level in FY2019, against the backdrop of a slowing economy. As we move into the second half of this year with the peak retail season coming up, we will continue to roll out interactive and exciting thematic events to engage shoppers and ramp up sales. On the debt refinancing front, we remain focused on completing the exercise within the year, ahead of March 2023 maturity.
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