SGX-listed Sasseur REIT (SG:CRPU) reported a lower DPU (distribution per unit) in its FY23 annual results, impacted by higher costs. The company announced a DPU of S$.06249 for 2023, marking a 4.6% decrease compared to the previous year.
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Sasseur REIT is a real estate investment trust that mainly invests in assets used for retail outlet mall purposes.
Let’s dive into some details of the results.
Sasseur REIT’s 2023 Annual Results
Sasseur REIT’s full-year distributable income decreased by 5.8% year-on-year to $83.4 million. This was mainly due to the appreciation of the Singapore dollar (SGD) compared to the Renminbi (RMB), higher costs, and taxes.
For the fourth quarter, the DPU grew by 8.7% to S$0.01415, driven by higher rental income and occupancy rates. In Q4, the rental income increased by 21.1%, with an average occupancy rate of 97.6% among its four properties. The REIT manager highlighted that its Chongqing Liangjiang outlet continued to achieve full occupancy for the quarter.
Sasseur REIT further expressed optimism about robust expansion in its outlet sales during 2023, notably with Chongqing Liangjiang Outlet achieving record-breaking sales. This further reflects the resilience of its assets in an uncertain macro environment.
Moving forward, Sasseur REIT is exploring funding options to intensify its efforts toward inorganic growth this year. Moreover, the REIT manager anticipates promising opportunities in the long term on the back of the growth of China’s outlet industry.
What is the Share Price Forecast for Sasseur REIT?
According to TipRanks’ rating consensus, CRPU stock has received a Moderate Buy rating, based on one Buy recommendation from analyst Lock Mun Yee from CGS-CIMB. The Sasseur REIT share price target is S$0.95, which is 40% higher than the current price level.
