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Sasseur REIT - Maybank Kim Eng 2021-08-13: Eyeing Growth

SASSEUR REIT (SGX:CRPU) | SGinvestors.io SASSEUR REIT (SGX:CRPU)

Sasseur REIT - Eyeing Growth


Sasseur REIT's 2Q21 In line, set for a stronger 2H

  • Sasseur REIT (SGX:CRPU)’s 2Q21 DPU was up 6.7% y-o-y, with 8.0% y-o-y growth in its entrusted management agreement (EMA) rental income; it would have been stronger at +18.6% y-o-y without a 10% retention.
  • Portfolio sales rose 6.4% y-o-y against lower occupancy, and should improve into the seasonally stronger 2H21. Sales recovery is gaining traction, with AEIs and tenant remixing efforts set to lift occupancies in 2022.
  • We maintain DPUs and our DDM-based S$1.05 target price (COE: 9.8%, LTG: 3.0%) for Sasseur REIT.
  • Catalysts are better-than-expected sales growth and DPU upside from potential acquisitions, backed by a strong balance sheet and visible sponsor pipeline.



Portfolio sales up 6.4% y-o-y

  • Portfolio sales were up 6.4% y-o-y, driven by a stronger performance of the Chongqing Liangjiang Outlet, as its sales jumped 18.9% y-o-y to contribute ~53% of overall sales. The asset remains fully occupied, even as portfolio occupancy fell to 92.5% (from 93.5% in 1Q21), due to a transitory void at Kunming (from 96.1% to 94.9%), with the exit of a gym operator, and tightened movements in Hefei (with rising COVID cases in nearby Nanjing), which are expected to normalise in late 3Q21.


AEIs, expansion to support sales growth

  • Sasseur REIT's management similarly retained 10% of sales commissions.


Strong balance sheet, deal upside






Chua Su Tye Maybank Kim Eng Research | https://www.maybank-ke.com.sg/ 2021-08-13
SGX Stock Analyst Report BUY MAINTAIN BUY 1.050 SAME 1.050



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