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- Strong DPU recovery. <\/strong>2H25 distributable income rose 6.5% YoY to S$43.3mn, with 2H DPU increasing 5.3% YoY to 3.083 SG cents. FY25 DPU reached 6.138 SG cents (+0.9% YoY), marking the first full-year DPU growth since FY20. The stronger-than-expected 2H performance was supported by robust promotional momentum, with the portfolio-wide Anniversary Sales campaign generating first-day sales of RMB233.9mn, up over 30% YoY.<\/li>\n<\/ul>\n\n\n\n
\n\n\n\n2H25 Results<\/h2>\n\n\n\n
Portfolio outlet sales in 2H25 rose 4.3% YoY to RMB2,417mn, supporting a 3.3% YoY increase in EMA rental income to RMB346.1mn. FY25 distributable income grew 2.8% YoY to S$85.7mn, marking an inflection after several years of DPU decline. The improvement was supported by lower financing costs and steady portfolio sales growth.<\/p>\n\n\n\n
\u00a0<\/div>\n\n\n\nManagement Fee Update<\/h2>\n\n\n\n
For FY26, the Manager has increased the cash proportion of its base management fee to 40%, from 30% in FY25, which may modestly reduce distributable income relative to unit-settled fees.<\/p>\n\n\n\n
\u00a0<\/div>\n\n\n\nValuation & Action<\/h2>\n\n\n\n
We maintain our OUTPERFORM<\/strong> rating with a target price of S$0.87<\/strong>, based on a DDM with an 8.2% cost of equity and 1.5% terminal growth rate. While DPU may soften marginally in the near term due to the higher management fee cash ratio and RMB\/SGD translation headwinds. Sasseur REIT\u2019s resilient operating performance, improving financing profile and defensive outlet positioning continue to underpin a stable return outlook. Medium-term upside remains supported by the potential for accretive acquisitions, which could enhance both NAV growth and income diversification.<\/p>\n\n\n\n
\u00a0<\/div>\n\n\n\nRisks<\/h2>\n\n\n\n
EMA expiry, RMB depreciation against SGD, slower-than-expected household spending recovery, and competition arising from online retail and new outlet supply.<\/p>\n\n\n\n
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\n","protected":false},"excerpt":{"rendered":"Strong DPU recovery. 2H25 distributable income rose 6.5% YoY to S$43.3mn, with 2H DPU increasing 5.3% YoY to 3.083 SG cents. FY25 DPU reached 6.138 SG cents (+0.9% YoY), marking the first full-year DPU growth since FY20. The stronger-than-expected 2H performance was supported by robust promotional momentum, with the portfolio-wide Anniversary Sales campaign generating first-day sales of RMB233.9mn, up over 30% YoY.<\/p>\n","protected":false},"author":17,"featured_media":81744,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","footnotes":""},"categories":[14],"tags":[],"class_list":["post-86272","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