Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Sasseur REIT — FY2020 Earnings Presentation
36 slides from Singapore Exchange's earnings presentation, Feb 26, 2021
Slide 1: Sasseur REIT Financial Results for 4Q 2020
SASSEUR REIT First Listed Outlet REIT in Asia Financial Results for 4Q 2020 26 Feb 2021
Slide 2: Disclaimer
Disclaimer Not for release, publication or distribution in or into the United States, Canada, Japan or the People’s Republic of China. This presentation shall be read in conjunction with Sasseur REIT’s financial results announcement dated 26 February 2021 published on SGX Net. This presentation is f
Slide 3: Contents
Contents Section 1 Key Highlights Section 2 Financial Results Section 3 Capital Management Section 4 Portfolio Update Section 5 Investment Merits 3
Slide 4: Key Highlights
Key Highlights SASSEUR (KUNMING) OUTLETS
Slide 5: FY 2020 Key Highlights
FY 2020 Key Highlights DPU yield 8.0%1 based on closing price of $0.820 as at 31 Dec 2020 EMA Rental EMA Fixed Distributable Distribution Income2 Component Income Per Unit3 +3.3% vs FY 2019 S$115.8 EMA Variable S$78.7 6.545 million Component million SG Cents -23.1% 5.2% y-o-y4 vs FY 2019 1.0% y-o-y4
Slide 6: 4Q 2020 Key Highlights
4Q 2020 Key Highlights EMA Rental EMA Fixed Distributable Distribution Income 1 Component Income Per Unit 2 +3.0% vs 4Q 2019 S$32.3 EMA Variable S$23.3 1.935 million Component million SG Cents -10.0% 2.5% y-o-y3 vs 4Q 2019 19.7% y-o-y3 18.8% y-o-y3 1. Excluding straight-line accounting adjustments 2
Slide 7: 4Q 2020 Key Highlights
4Q 2020 Key Highlights Aggregate Sales Leverage NAV RMB 1,246.4 million 27.9% Per Unit 3Q 2020: RMB 1,110.6 million 3Q 2020: 27.8% 91.40 SG Cents Weighted Average Occupancy Lease Expiry1 93.5% 14.3% vs IPO 2.6 years 3Q 2020: 93.1% 1. Weighted average lease expiry by net lettable area. 7
Slide 8: Financial Results
Financial Results SASSEUR (CHONGQING) OUTLETS 8
Slide 9: 4Q 2020 DPU Increased 18.8% vs 4Q 2019
4Q 2020 DPU Increased 18.8% vs 4Q 2019 Change Change Change 4Q 2020 3Q 2020 4Q 2019 FY 2020 FY 2019 % % % Fixed Component 102.4 102.4 - 99.4 +3.0 409.6 396.3 +3.3 (RMB mil) Variable Component 56.7 50.2 +13.1 63.1 -10.0 170.2 221.3 -23.1 (RMB mil) EMA Rental Income1 159.1 152.6 +4.3 162.5 -2.1 579.8
Slide 10: Healthy Balance Sheet
Healthy Balance Sheet S$ mil 31 Dec 2019 31 Dec 2020 Investment properties 1,587.2 1,651.0 Cash and short-term deposits 154.7 155.9 Other assets 28.5 51.2 Total Assets 1,770.4 1,858.2 Loans and borrowings 478.6 504.2 Other liabilities 222.6 248.5 Total Liabilities 701.2 752.8 Net Assets 1,069.2 1,10
Slide 11: Distribution Details
Distribution Details Distribution Period 1 1 October to 31 December 2020 Distribution Per Unit1 1.935 Singapore cents 1. Based on 100% distribution pay-out ratio Distribution Timetable Notice of Books Closure Date 26 February 2021 Ex-dividend Date 11 March 2021 Books Closure Date 12 March 2021 Distr
Slide 12: Sasseur REIT Yield vs Other Asset Classes
Sasseur REIT Yield vs Other Asset Classes The only retail S-REIT with positive return in 20201 2 Sasseur REIT Distribution Yield 8.0% 3 Average of the 43 S-REITs and Property Trust 6.4% 3 STI Index 3.7% CPF Ordinary Account Interest Rate 2.5% MAS Benchmark Govt Bond 10 Year 4 0.8% 5 Singapore Fixed
Slide 13: Capital Management
Capital Management SASSEUR (HEFEI) OUTLETS 13
Slide 14: Prudent Capital Management
Prudent Capital Management Completion of refinancing exercise in September 2020 Reducing weighted average cost of debt from 4.41% to 3.20% Average Interest Weighted Aggregate Debt Coverage Average Cost Leverage of Debt Maturity Ratio 4Q 2020 27.9% 2.2 years 7.8 times 3.20% p.a. 4Q 2019 27.8% 2.7 yea
Slide 15: Prudent Capital Management
Prudent Capital Management Debt Facilities (SGD million) Debt Headroom1 Debt Headroom1 828 823 Debt Headroom1 554 Offshore Debts2 125 Offshore Debts2 Offshore Debts2 248 247 Aggregate Aggregate Aggregate Leverage Leverage Leverage 27.8% Onshore Debts 27.8% 27.9% 367 Onshore Debts Onshore Debts 269 2
Slide 16: Debt Maturity Profile
Debt Maturity Profile Weighted average debt maturity is 2.2 years S$ million Debt Maturity 508 5 5 2021 2022 2023 16
Slide 17: Portfolio Update
Portfolio Update SASSEUR (HEFEI) OUTLETS
Slide 18: Portfolio Summary
Portfolio Summary Portfolio Valuation* : 8,142 mil NLA : 312,844 sqm Occupancy ^ : 93.5% Hefei Outlet Mall *Based on independent valuation as at 31 Dec 20 by JLL (RMB million). Valuation : 2,758 mil ^Occupancy for 4Q 2020 NLA : 144,583 sqm Occupancy : 94.9% Chongqing Outlet Mall Bishan Outlet Mall K
Slide 19: 4Q 2020 Outlet Sales Summary
4Q 2020 Outlet Sales Summary Significant 12.2% sales improvement as compared to 3Q 2020 4Q 2020 4Q 2020 vs 4Q 2020 vs FY 2020 FY 2020 vs Outlets Sales 4Q 2019 3Q 2020 Sales FY 2019 (RMB’mil) (%) (%) (RMB’mil) (%) Chongqing 630.5 -6.4 +6.2 1,852.3 -20.9 Bishan 131.8 +3.9 +24.1 368.5 -19.7 Hefei 275.8
Slide 20: Portfolio Occupancy
Portfolio Occupancy 4 Outlets enjoy stable occupancy 100.0% 100.0% 96.5% 95.8% 93.3% 94.9% 93.1% 93.5% 81.5% 81.4% 3Q20 4Q20 3Q20 4Q20 3Q20 4Q20 3Q20 4Q20 3Q20 4Q20 重庆 ChongQing 璧山 Bishan 合肥 Hefei 昆明 Kunming 项目组合 Portfolio 4Q 2020 vs 3Q 2020 20
Slide 21: Weighted Average Lease Expiry (WALE)
Weighted Average Lease Expiry (WALE) Deliberate short lease to optimise tenant mix Lease Expiry by NLA & Gross Revenue WALE by : 90.0% 80.7% NLA 2.6 years 80.0% Gross Revenue 1.1 years 70.0% * Marginal increase due to renewals and new leases 60.6% 60.0% 50.0% 40.0% 30.0% 23.8% 20.0% 10.8% 10.0% 7.1%
Slide 22: VIP Members - Growth by Outlets
VIP Members - Growth by Outlets Total VIP members increased 33% from end 2019 to reach 2.11 million Members in '000 2,400 2108.2 2,100 1,800 1,584.8 1,500 1,200 900 671.0 645.6 600 465.9 325.7 300 0 Chongqing Bishan Hefei Kunming Total 2017 2018 2019 2020 22
Slide 23: Well Diversified Trade Mix
Well Diversified Trade Mix Breakdown of NLA1 by Trade Mix Breakdown of Revenue2 by Trade Sector Ad-hoc Outlet, Kids Amusement Park 0.8% Lifestyle 0.8% Shoe Wear 3.9% 2.0% Ad-hoc Outlet 1.3% Anchor Tenants 0.6% Children 4.1% Miscellaneous Kids Amusement 3.6% Park 4.5% F&B 3.8% Lifestyle 4.7% Shoe Wea
Slide 24: Key Areas of Active Asset Management Strategy
6 Keys Areas of Active Asset Management Strategy RMB 10 mil 3+2 Leveraging on VIP Tenant Mix Synergy in Sales Promotions All Media Membership Review Operations Elevating more • 3 key • Social Media • Comprehensive • Frequent review Two outlets, one brand tenants in events for members of tenant mix o
Slide 25: Exciting Promotional Activities to draw Shoppers
Exciting Promotional Activities to draw Shoppers Year-End Promotional Events to Attract Shoppers 25
Slide 26: Asset Enhancement Initiatives – Chongqing
Asset Enhancement Initiatives – Chongqing Proactive Lease Management : Tenant Mix Reconfiguration Chongqing Outlets The AEI saw improvement in 15,000sqm of floor area & increased efficiency. Brought in 44 new brands to the outlet. Expansion of Young and Trendy Ladies’ Apparel Trendy Sports Apparel &
Slide 27: Asset Enhancement Initiatives – Hefei
Asset Enhancement Initiatives – Hefei Completion of Sports Section at Block B, Hefei Outlets 27
Slide 28: Chongqing Outlets
Chongqing Outlets Sales RMB 'Mil Chongqing 750 673 609 630 580 593 600 480 450 396 300 233 150 - 1Q 2Q 3Q 4Q 2017 2018 2019 2020 Year Commenced Operations Sep 2008 Outlet Members (‘000) GFA (sqm) 73,373 671 635 650 586 36 NLA (sqm) 50,885 49 514 530 57 486 16 Occupancy Rate (%, 31 Dec 20) 100 500 28
Slide 29: Bishan Outlets
Bishan Outlets Sales RMB 'Mil Bishan 150 125 127 132 114 106 100 93 79 52 50 - 1Q 2Q 3Q 4Q 2017 2018 2019 2020 Year Commenced Operations Oct 2014 Outlet Members GFA (sqm) 68,791 (‘000) 350 326 NLA (sqm) 47,308 301 284 25 290 256 263 17 21 231 7 Occupancy Rate (%, 31 Dec 20) 81.4 230 204 25 182 26 15
Slide 30: Hefei Outlets
Hefei Outlets Sales RMB 'Mil Hefei 400 338 300 273 286 276 243 218 223 200 128 100 - 1Q 2Q 3Q 4Q Year Commenced Operations May 2016 2017 2018 2019 2020 Outlet Members GFA (sqm) 147,316 (‘000) NLA (sqm) 144,583 646 650 573 72 550 522 52 Occupancy Rate (%, 31 Dec 20) 94.9 478 440 43 450 38 352 88 No.
Slide 31: Kunming Outlets
Kunming Outlets Sales RMB 'Mil Kunming 250 229 238 237 208.3 200 180 188 150 143 122 100 50 - 1Q 2Q 3Q 4Q 2017 2018 2019 2020 Year Commenced Operations Outlet Members Dec 2016 (‘000) GFA (sqm) 88,257 550 466 446 NLA (sqm) 70,067 450 417 20 390 29 374 27 322 16 350 52 Occupancy Rate (%, 31 Dec 20) 95
Slide 32: Potential Pipelines
Potential Pipelines • All acquisitions must be yield accretive • Reduce concentration risk, explore other parts of the World Changchun • 3 new projects (Suzhou, Nanjng II, Shijiazhuang) added in 4Q2020, total Pipeline Properties increased from 9 to 12 Shijiazhuang ROFR Properties Lanzhou Xi’an Nanji
Slide 33: Investment Merits
Investment Merits 33 SASSEUR (KUNMING) OUTLETS
Slide 34: Key Milestone and Awards
Key Milestone and Awards FTSE EPRA NAREIT Global Emerging Market Index Inclusion1 1 2 3 Most Promising REIT in Best Retail REIT (Platinum) Best REIT Deal in Asia Best CEO (Platinum) Southeast Asia 2018 By: Fortune Times REITs Pinnacle Best Investor Relations (Gold) By: Alpha Southeast Asia 12th Annu
Slide 35: Investment Merits
Investment Merits Market Leadership: Sasseur Group is one of the largest operator of outlet 1 malls in China, with 13 malls and over 12 years of operating experience Unique Art-Commerce Busines model : Full alignment of interests of tenants, 2 REIT unitholders, the REIT and entrusted managers, with
Slide 36: Thank You
Thank You For enquiries, please contact: Ms Wong Siew Lu, CFA, CA (Singapore) Head, Investor Relations and Corporate Affairs Email: wongsl@sasseurreit.com Tel: +65 6360 0290 Address: 7 Temasek Boulevard, #06-05, Suntec Tower One, Singapore 038987