Sasseur REIT

[cyclone]

Sasseur REIT is a Singapore real estate investment trust established with the investment strategy of investing principally, directly or indirectly, in a diversified portfolio of income-producing real estate which is used primarily for retail outlet mall purposes, as well as real estate related assets in relation to the foregoing, with an initial focus on Asia.

The Initial Portfolio will comprise 4 properties located in the People’s Republic of China ("PRC") :
#. Property, Expiry Year of Land Use Rights
1. Chongqing Outlets, 2047
2. Bishan Outlets, 2051
3. Hefei Outlets, 2053
4. Kunming Outlets, 2054

Offering Price of S$0.80 per Unit.

7.5% Distribution Yield for Forecast period 2018.

Total number of Units to be offered under the Offering (subject to the Over-Allotment Option) : 266,562,500 Units
* Placement Tranche: 252,812,500 Units
* Public Offer: 13,750,000 Units

Over-Allotment Option is An option granted by the Unit Lender to the Joint Bookrunners and Underwriters to purchase from the Unit Lender up to an aggregate of 32,000,000 Units at the Offering Price, solely to cover the over-allotment of Units (if any).

The sponsor :  Sasseur Cayman Holding Limited.

Following the Offering, the Sponsor is expected to indirectly hold approximately 55% (assuming the Over-Allotment Option is exercised in full) to approximately 58% (assuming the Over-Allotment Option is not exercised) of the Units as at the Listing Date.

The total number of outstanding Units immediately after completion of the Offering and the Redemption will be 1,180,280,000 Units.

Sasseur REIT opened at S$0.805 today.

[daiwa888]

finally the price is climbing back closer to IPO price of 80 cents
when it was below 70 cents recently, the yield was around 10% (recently announced 6 month div of 3.5 cents so full year div 7 cents)
at 79cents today, the yield is around 8.86% (assume 7c div is maintained) so still quite attractive

[cyclone]

Sasseur REIT will be included in FTSE EPRA Nareit Global Emerging Index from 23 December 2019

Sasseur Asset Management Pte. Ltd., the manager of Sasseur Real Estate Investment Trust (砂之船房地产 投资信托), the first outlet mall REIT listed in Asia, announced that Sasseur REIT will be included in the FTSE EPRA Nareit Global Emerging Index with effect from 23 December 2019.

The FTSE EPRA Nareit Global Emerging Index is a collaboration between FTSE Russell, the European Public Real Estate Association (“EPRA”) and the National Association of Real Estate Investment Trusts (“Nareit”). The Index covers the performance of listed real estate companies and REITs in emerging markets, and is seen as the leading benchmark for listed real estate investments.

More details in https://links.sgx.com/FileOpen/Sasseur_R...eID=589642

[weijian]

I am not sure how much exactly can be saved. IIRC, Capitaland Investment currently pays its dividend annually and responding to a shareholder's request to increase its frequency, the BOD rejected the request and explained it was mainly to "save money" as they had a large shareholder base.

CHANGE FROM QUARTERLY TO SEMI-ANNUAL DISTRIBUTIONS AND PAYMENT OF MANAGEMENT FEES IN PART CASH AND PART UNITS COMMENCING FROM FINANCIAL YEAR ENDING 31 DECEMBER 2024

With the change to semi-annual distributions, Sasseur REIT will be able to achieve savings, given the compliance costs and administrative resources required for quarterly distributions. The Manager also wishes to state that Sasseur REIT will continue to maintain half-yearly reporting of financial results and will provide business and operational updates between the announcements of half-yearly financial results

https://links.sgx.com/FileOpen/Sasseur_R...eID=803269

[cmeng_chan]

I am not sure how much exactly can be saved. IIRC, Capitaland Investment currently pays its dividend annually and responding to a shareholder's request to increase its frequency, the BOD rejected the request and explained it was mainly to "save money" as they had a large shareholder base.

CHANGE FROM QUARTERLY TO SEMI-ANNUAL DISTRIBUTIONS AND PAYMENT OF MANAGEMENT FEES IN PART CASH AND PART UNITS COMMENCING FROM FINANCIAL YEAR ENDING 31 DECEMBER 2024

With the change to semi-annual distributions, Sasseur REIT will be able to achieve savings, given the compliance costs and administrative resources required for quarterly distributions. The Manager also wishes to state that Sasseur REIT will continue to maintain half-yearly reporting of financial results and will provide business and operational updates between the announcements of half-yearly financial results

https://links.sgx.com/FileOpen/Sasseur_R...eID=803269

[Shrivathsa]

While evaluating this REIT for investment, what I noticed was that if one looks at the dividends paid over the period from 2020 till 2024, the trend showed an increase in 2021 and then from then it has essentially been dropping every year.

2025 0.05984
2024 0.04568
2023 0.06136
2022 0.07148
2021 0.07139
2020 0.06239

If one examines it as a 5 year dividend drop from 2020 to 2025, the dividend has dropped by about 4%, if however, one zooms in and looks at as a 3/4 year period from 2021/2022 to 2025, the drop is about 16%.

Interestingly back in 2019, a VB poster had indicated 7 cents dividend 80 cents, it was 8.81% yield.

That is more or less the scenario today where the dividend is about 6 cents (5.984 to be precise). At 69 cents, it yields 8.67%.

One worrying thing is that the SGD is appreciating against the Chinese Yuan and hence it is likely that there will be some compression in NAV / Distribution.

On the bright side, the leverage is low.

Another way of evaluating was in case one had bought on August 20, 2020 and held it till now, one would be sitting on a return of 5.08% Annual Rate of Return.

Purchase 0.78
Dividends 0.30975
Current 0.69
Total 0.99975
Rate of Return Annual 0.050895088

One would imagine that nothing like COVID will ever happen again so, it will likely be better.

Having said that, when even a simple STI ETF would have delivered a 12% price return with a 4% yield, it is unlikely that this will appeal as an investment, especially when one is expecting a higher return for bearing currency risk and country risk. That is my opinion.