Sasseur REIT's 1H FY24 Result Review
Basic Profile & Key Statistics
Key Indicators
Performance Highlight
EMA rental income in both RMB and SGD remained stable YoY. However, distributable income and DPU declined YoY due to a combination of lower management fees paid in units, reduced forex gains, higher finance expenses (from changes in borrowing cost treatment), and increased retention.
Sales
Portfolio sales dropped by 3.9% YoY.
Asset Enhancement Initiatives
AEI for the Kunming outlet began in April and is expected to finish this month.
Related Parties Shareholding
The REIT sponsor, REIT manager, and directors of the REIT manager hold a relatively high proportion of shareholding.
Lease Profile
Income is entirely in RMB. WALE and weighted average land lease expiry are both short, with concentrated lease expiries.
Debt Profile
The debt profile is mixed: low gearing, high interest coverage, and a high fixed-rate debt proportion are positives, but high debt costs, maturity concentration in 2026, and low unsecured debt proportion are less favorable.
Diversification Profile
The portfolio is tenant-diversified but property-concentrated.
Key Financial Metrics
Overall, the financial metrics are favorable.
DPU Breakdown
TTM Distributable Income Breakdown:83.2% from Operation9% from Management Fees Paid in Units7.9 being Retained
Trends (Up to 10 Years)
Uptrend: DPU from Operations, Adjusted Interest Coverage Ratio, Operating Distributable Income on Capital, Operating Distributable Income Margin, Operating Distribution Proportion
Slight Uptrend: Committed Occupancy
Flat: NAV per Unit, Operating Distributable Income over Manager's Fees
Slight Downtrend: Property Yield
Price Range & Relative Valuation Metrics
Dividend Yield - Below -1SD for 1y; Average for 3y, 5y & 10y
P/NAV - Below -1SD for 1y, 3y, 5y & 10y
Author's Opinion
As compared to the previous half-year, EMA rental income remains similar. However, distributable income and DPU have improved mainly due to lower tax expenses. For debt, there is no refinancing requirement until March 2025.
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- skythelimit·08-27Great analysis! Very informative and well-presented. Thanks for sharing! [Applaud]LikeReport