REIT-vitalisation Continues Amid Macro Conditions<\/strong><\/p>\n\n\n\n 3Q25 EMA rental income rose 4.9% YoY to RMB166.3mn, driven by a 9.7% increase in the variable component on strong outlet sales. In SGD terms, EMA income rose 2.6% YoY despite currency headwinds. Weighted average cost of debt declined to 4.6%, and management expects it to fall below 4.5% by 4Q25.<\/p>\n\n\n\n China\u2019s consumption environment remained soft nationwide, with retail sales growing only 2.9% YoY in October, the weakest in over a year, while CPI fell 0.3% YoY and PPI decline 2.3% YoY, reflecting weak household sentiment from the property downturn and labour softness. Despite this, outlet formats have continued to outperform traditional malls as consumers trade down to value-oriented retail. Medium-term policy direction has also turned more supportive, China\u2019s 2026-2030 plan aims to significantly raise household consumption from the current ~40% of GDP, supported by RMB1.3 trillion in ultra-long treasury bonds (including RMB300bn reserved for consumption-related trade-in schemes) and a new 19-point plan to stimulate services and experiential consumption. This structural pivot supports Sasseur\u2019s value-driven and experiential outlet model.<\/p>\n\n\n\n We maintain our OUTPERFORM<\/strong> rating with a revised target price of S$0.87<\/strong>, based on a Dividend Discount Model incorporating a lower 8.2% cost of equity (from 8.7%) and a 1.5% terminal growth rate. While DPU may soften marginally in the near term due to partial management fee payments in units and RMB\/SGD translation headwinds, these effects remain manageable and transitory. Sasseur REIT\u2019s strong operating performance, improving financing visibility, and defensive outlet positioning continue to underpin a resilient return profile. Medium-term upside is further supported by the potential for accretive acquisitions from the sponsor\u2019s ROFR pipeline, which could enhance both NAV and income diversification.<\/p>\n\n\n\n RMB depreciation against SGD, slower-than-expected household spending recovery, and competition arising from online retail and new outlet supply.\u00a0 \u00a0<\/p>\n\n\n\n Operational strength. Sasseur REIT delivered a resilient 3Q25 performance, with 10.8% YoY outlet sales growth, occupancy remaining high at 98.5%, and a WALE of 2.0 years. The results were supported by strong tenant retention and longer lease commitments from sports, lifestyle and domestic fashion brands.<\/p>\n","protected":false},"author":17,"featured_media":81744,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","footnotes":""},"categories":[14],"tags":[],"class_list":["post-81743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-reports"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n
\n\n\n\n3Q25 Results<\/h2>\n\n\n\n
Macro Resilience And Structural Tailwinds<\/h2>\n\n\n\n
Valuation & Action<\/h2>\n\n\n\n
Risks<\/h2>\n\n\n\n
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