Sasseur Reit posts 0.1% rise in H2 DPU to S$0.02929 on resilient rental income

THE manager of Sasseur Real Estate Investment Trust (Reit) on Thursday (Feb 20) posted a distribution per unit (DPU) of S$0.02929 for the second half ended December, up 0.1 per cent from S$0.02927 in the previous corresponding period.

This was supported by resilient rental income under the Reit’s entrusted management agreement (EMA) model. EMA rental income for the second half rose 0.8 per cent on the year to 335.1 million yuan (S$62.8 million) from 332.5 million yuan. 

This brought distributable income up 3.1 per cent to S$40.6 million from S$39.4 million previously. The rise in distributable income was attributed to lower finance cost and tax expenses.

The distribution will be paid on Mar 27, after the record date on Mar 18.

For the full year, DPU was 2.7 per cent lower year on year at S$0.06082 from S$0.06249. This was mainly attributed to a lower DPU recorded for the first half, as well as higher retention to support onshore loan principal amortisation and future capital expenditures.

Distributable income fell 0.1 per cent to S$83.3 million from S$83.4 million. 

EMA rental income for the full year rose 0.9 per cent to 664.1 million yuan from 658.5 million yuan. This was driven by a 3 per cent rise in the fixed component, which offset a 3.7 per cent decline in the variable component, in line with a 3.9 per cent drop in the portfolio’s outlet sales.

In Singapore dollars, however, EMA rental income for the full year fell 0.4 per cent to S$124.5 million from S$124.9 million, primarily due to currency translation effects.

Units of Sasseur Reit closed 0.7 per cent or S$0.005 lower at S$0.69 on Wednesday.