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Asia’s First Outlet Mall REIT. Sasseur REIT (SGX: CRPU, hereafter SASSR) is Asia’s first outlet mall–focused REIT and the pioneer in this niche across the region. Its portfolio comprises four premium outlet malls in high-growth Tier‑2 Chinese cities—Chongqing, Hefei, and Kunming—appraised at RMB 8.4 billion as of December 31 2024. SASSR derives rental income through an Entrusted Management Agreement (EMA) with Entrusted Manager, who oversees day-to-day operations, marketing, and cash collection. The REIT’s VIP membership base reached 4.3 million in 1Q25, with members contributing over 60% of total outlet sales—demonstrating strong customer stickiness and sales efficiency.

Key Catalysts for SASSR. 1) Resilient performance of outlet overall compared to the traditional retail malls even during economic down-turn; CCI getting better; 2) The unique EMA model (fixed portion as the cushion and variable portion enjoy the upside when sales performance is good; 3) The true value proposition of a far better total return than industry average; stable dividend payment + industry low gearing + high yield.

1Q25 Operational Highlights. Tenant sales declined by 0.9% year-over-year, largely reflecting more subdued post-Lunar New Year spending. Among the four assets, Chongqing Liangjiang outperformed thanks to an expanded range of product offerings, while the other three properties experienced modest low single-digit declines. Despite the declining tenant sales, the robust EMA model leads to solid result in terms of RMB. Quarterly EMA rental income reached RMB175.4 million, increasing by 1.6% year-over-year. Due to strengthening SGD against RMB, in terms of SGD, EMA rent income decreased by 0.2% year-over-year.

Enhanced Balance Sheet and Funding Strength. SASSR continued to strengthen its capital structure during the quarter. As of 1Q25, gearing stood at 25.9%, reflecting a conservative balance sheet. Interest expenses fell by 30 bps quarter-over-quarter, supported by proactive refinancing efforts. Notably, the REIT secured its first green loan—a RMB 308 million facility from OCBC Chongqing with a 10-year tenor—to refinance an existing sponsor loan. In addition, SASSR obtained an RMB 508 million sponsor loan to prepay offshore borrowings due in March 2026. These actions are expected to reduce average funding costs to a range of 4.5%–5% in FY25, enhancing financial flexibility and interest coverage.

Valuation and Peer Comparisons. SASSR currently trades at SGD 0.64 per unit, implying a market capitalization of approximately SGD 804 million. The REIT offers a compelling dividend yield of 9.2% and trades at a forward price-to-earnings (P/E) multiple of 11x, on FY2025 estimates, —well below the peer group average of 16x P/E with 6.3% dividend yield. This meaningful valuation discount underscores SASSR’s relative attractiveness and room for rerating, especially as investor confidence in China’s consumption recovery continues to build.

Conclusion. With resilient fundamentals, disciplined capital management, and multiple positive catalysts—including consumption recovery, lower financing costs, and evolving retail trends—SASSR presents a differentiated opportunity in Asia’s REIT landscape. Its stable rental income under the EMA structure, high portfolio occupancy, and attractive yield profile positions the REIT as a compelling vehicle for investors seeking exposure to China’s outlet mall sector through a Singapore-listed structure.