Sasseur REIT's 1H FY25 Result Review

$Sasseur Reit(CRPU.SI)$

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

In SGD terms, EMA rental income reduced slightly YoY due to depreciation of RMB against SGD. Distributable income to unitholders remains stable due to lower finance expenses and higher exchange gain, offset by lower management fees payable in units. However, DPU has declined due to a higher amount retained. 

Sales

For 1H FY25, portfolio sales increased by 0.8% YoY, mainly from Chongqing Liangjiang and Hefei. 

Related Parties Shareholding

• REIT Sponsor's Shareholding: Favorable

• REIT Manager's Shareholding: Favorable

• Directors of REIT Manager's Shareholding: Favorable

Lease Profile

• Committed Occupancy: Favorable

• Income Received in SGD/Major Currencies: Less Favorable

• Highest Annual Lease Expiry in 4 Years: Less Favorable

• WALE: Less Favorable

• Weighted Average Land Lease Expiry: Less Favorable

Debt Profile

• Adjusted Interest Coverage Ratio: Favorable

• Cost of Debt: Less Favorable

• Gearing Ratio: Favorable

• Fixed Rate Debt Proportion: Favorable

• Unsecured Debt Proportion: Less Favorable

• Highest Annual Debt Maturity in 4 Years: Less Favorable

• WADM: Favorable

Diversification Profile

• Top Geographical Weightage: Moderate

• Top Property Weightage: Moderate

• Top 5 Properties' Weightage: Less Favorable

• Top Tenant Weightage: Moderate

• Top 10 Tenants' Weightage: Favorable

Key Financial Metrics

• Property Yield: Favorable

• Manager's Fees over Operating Distributable Income: Favorable

• Operating Distributable Income on Capital: Favorable

• Operating Distributable Income Margin: Favorable

• Operating Distribution Proportion: Favorable

DPU Breakdown

• TTM Distribution Breakdown:82.8% from Operation7.5% from Management Fees Paid in Units9.7% being Retained 

Trends (Up to 10 Years)

• Uptrend: Committed Occupancy, Adjusted Interest Coverage Ratio, Operating Distributable Income on Capital, Operating Distributable Income Margin, Operating Distribution Proportion

• Slight Uptrend: DPU from Operations

• Flat: NAV per Unit, Top 5 Properties' Weightage, Property Yield, Operating Distributable Income over Manager's Fees

• Downtrend: Top 10 Tenants' Weightage

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y & 3y & 5y & 10y

• P/NAV: Above +2SD for 1y; Above +1SD for 3y; Average for 5y & 10y

Author's Opinion

Compared to the previous half-year, EMA rental income has declined slightly. However, distributable income and DPU have improved, mainly due to higher exchange gains and lower tax expenses. On the debt front, there is no refinancing requirement for the remainder of 2025.

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my own findings and should not be considered as professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decision.