Sasseur Real Estate Investment Trust · SGX:CRPU
Sasseur Real Estate Investment Trust — Shareholder Meeting (June 2020)
38 slides from Sasseur Real Estate Investment Trust's shareholder meeting presentation, Jun 17, 2020
Slide 1: Sasseur REIT FY2019 Annual General Meeting
SASSEUR REIT First Listed Outlet Mall REIT in Asia FY2019 Annual General Meeting 17 June 2020
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 14 May 2020 published on SGX Net. This presentation is for inf
Slide 3: Contents
Contents Section 1 COVID-19 Update Section 2 FY2019 Key Highlights & Awards Section 3 Financial & Operational Performance Section 4 Capital Management Section 5 Portfolio Update Section 6 Navigating COVID-19 Section 7 Investment Merits 3
Slide 4: COVID-19 Update
COVID-19 Update Despite the disruptions caused by COVID-19, Sasseur REIT has responded responsibly and proactively Intensify Preemptively Organise sales customer halt operations events upon engagement at Sasseur reopening to through digital Outlets attract shoppers platforms Our unique Entrusted Man
Slide 5: FY2019 Key Highlights & Awards
FY2019 Key Highlights & Awards SASSEUR (KUNMING) OUTLETS
Slide 6: FY2019 Key Highlights
FY2019 Key Highlights A SPECTACULAR YEAR IN REVIEW 6
Slide 7: Awards
Awards Mar 2019 Sep 2019 Sep 2019 12th Annual Best Deal & Solution International Investor Magazine 6th Asia Pacific REITs Awards 2019 Awards by Alpha Southeast Asia REIT Company of the Year Best Retail REIT (Platinum) Best REIT Deal in Southeast Asia Singapore 2019 Best CEO (Platinum) 2018 Best Inve
Slide 8: Financial & Operational Performance
Financial & Operational Performance SASSEUR (CHONGQING) OUTLETS 8
Slide 9: Strong Results in FY2019
Strong Results in FY2019 FY 2019 DPU yield 8.2%2, well above projection of 7.8% EMA Rental Distributable Distribution NAV Income1 Income Per Unit2 Per Unit RMB 617.6 S$77.9 6.533 89.20 million million SG Cents SG Cents 1.0% vs 4.7% vs 4.7% vs 11.5% vs Projection Projection Projection IPO 1. Excludin
Slide 10: Robust Operating Performance FY2019
Robust Operating Performance FY2019 Aggregate Outlet Sales Occupancy Leverage RMB 4.8 billion 96.0% 27.8% 12% Increase from FY2018 EMA Variable Weighted Average Portfolio Component (RMB) Lease Expiry1 Valuation +1.9% S$1.6 billion Above Projection 3.0 years 3% Increase from FY2018 1. Weighted averag
Slide 11: 1Q 2020 Key Highlights
1Q 2020 Key Highlights Annualised DPU yield 9.1% based on closing price $0.590 as at 31 March 2020 EMA Rental Distributable Distribution NAV Income1 Income Per Unit Per Unit RMB 127.2 S$16.0 1.334 92.58 million million SG Cents SG Cents 17.1% y-o-y 18.7% y-o-y 19.4% y-o-y 15.7% vs IPO 1. Excluding s
Slide 12: 1Q 2020 Operational Performance
1Q 2020 Operational Performance EMA Fixed Aggregate Component (RMB)1 Outlet Sales Leverage +3.9% RMB 534.5 million 28.5% 55.7% decline vs 1Q 2019 FY 2019: 27.8% vs 1Q 2019 EMA Variable Weighted Average Occupancy Component (RMB) Lease Expiry2 94.8% -54.8% 2.9 years vs 1Q 2019 1. Include additional He
Slide 13: Healthy Balance Sheet
Healthy Balance Sheet Actual Actual S$ mil 31 Mar 2020 31 Dec 2019 Investment properties 1,652.5 1,587.2 Cash and short-term deposits 73.6 154.7 Other assets 37.3 28.5 Total Assets 1,763.5 1,770.4 Loans and borrowings 490.3 478.6 Other liabilities 161.0 222.7 Total Liabilities 651.3 701.3 Net Assets
Slide 14: Capital Management
Capital Management SASSEUR (HEFEI) OUTLETS 14
Slide 15: Prudent Capital Management
Prudent Capital Management Average Interest Weighted Aggregate Debt Coverage Average Cost Leverage of Debt Maturity Ratio 1Q 2020 28.5% 2.49 years 4.7 times 4.3% p.a. FY 2019 27.8% 2.73 years 4.8 times 4.4% p.a. Loan Facilities Onshore Offshore Currency RMB SGD ~SGD 378 million SGD 125 million Outst
Slide 16: Prudent Capital Management
Prudent Capital Management Debt Facilities (SGD million) 1Q 2020 FY 2019 Debt Headroom1 379 Debt Headroom1 305 Offshore Debts2 125 Limit of Offshore Debts2 Limit of 50% 125 45% Aggregate Aggregate Leverage Leverage 28.5% Onshore Debts 27.8% 378 Onshore Debts 367 As at 31 March 2020 As at 31 December
Slide 17: Debt Maturity Profile
Debt Maturity Profile Weighted average debt maturity is 2.49 years Refinancing discussion in progress S$ million Debt Maturity 359 133 4 8 2020 2021 2022 2023 As at 31 March 2020 17
Slide 18: Portfolio Update
Portfolio Update SASSEUR (HEFEI) OUTLETS
Slide 19: Portfolio Summary
Portfolio Summary Portfolio Valuation* : 8,212 mil NLA : 312,844 sqm Occupancy ^ : 94.8% Hefei Outlet Mall Valuation : 2,795 mil NLA : 144,583 sqm Occupancy : 95.5% Chongqing Outlet Mall Bishan Outlet Mall Kunming Outlet Mall Valuation : 2,973 mil Valuation : 824 mil Valuation : 1,620 mil **Based on
Slide 20: Portfolio Occupancy (1Q 2020 vs 4Q 2019)
Portfolio Occupancy (1Q 2020 vs 4Q 2019) 4 Outlets Malls enjoy high stable occupancy 100.0% 100.0% 96.3% 95.5% 94.9% 96.0% 96.0% 94.8% 92.5% 86.5% 4Q19 1Q20 4Q19 1Q20 4Q19 1Q20 4Q19 1Q20 4Q19 1Q20 重庆 ChongQing 璧山 Bishan 合肥 Hefei 昆明 Kunming 项目组合 Portfolio 1Q 2020 vs 4Q 2019 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 : 80.0% NLA 2.9 years 70.0% 65.4% Property Income 1.0 years 60.0% 50.2% 50.0% 40.0% 30.0% 22.5% 23.2% 20.0% 18.2% 10.0% 5.6% 4.7% 5.2% 2.8% 2.2% 0.0% 2020 2021 2022 2023 202
Slide 22: VIP Members - Growth by Outlets
VIP Members - Growth by Outlets Total VIP members increased 4.8% in 1Q 2020 to reach 1.66 million 2017 2018 2019 1Q 2020 1,800 1,661 1,600 1,400 Members in '000 1,200 1,000 800 600 530 478 390 400 263 200 0 Chongqing Bishan Hefei Kunming Total 22
Slide 23: Well Diversified Trade Mix
Well Diversified Trade Mix Breakdown of NLA1 by Trade Mix Breakdown of Revenue2 by Trade Sector Lifestyle 2.9% Ad-hoc Outlet Kids Amusement Park 0.8% Anchor Tenants 0.7% Children 3.7% Lifestyle 0.3% 2.2% Ad-hoc Outlet 2.5% Kids Amusement Park 4.4% F&B 3.0% Shoe Wear 4.7% Shoe Wear 4.6% Miscellaneous
Slide 24: AEI - Chongqing Outlets New Mall Concept
AEI - Chongqing Outlets New Mall Concept Bringing nostalgia to visitors through retro concept, invoking the Chongqing memory of late 1980s. The mall design will also take reference from 2 cultural pillars: 码头江湖文化, 陪都抗战文化 Asset Enhancement Initiative September Anniversary Sale Event • Reposition as a
Slide 25: AEI - Hefei Outlets Creating Synergy Between Block A & B
AEI - Hefei Outlets Creating Synergy Between Block A & B Conversion of driveway to walkway Block B : Conversion to Sports Theme Asset Enhancement Initiative Engaging Shoppers with Art Commerce • Repositioning of Block B into sports theme • Space maximization and conversion of pedestrian walkway to e
Slide 26: Navigating COVID-19
Navigating COVID-19 SASSEUR (HEFEI) OUTLETS 26
Slide 27: Navigating COVID-19
Navigating COVID-19 - From 26 Jan: temporarily closed outlets for about 7 weeks to prevent the spread of COVID-19. - Swiftly established digital platform to allow customers to shop online. 27
Slide 28: Navigating COVID-19
Navigating COVID-19 - Complement sales through digital platform such as WeChat and Tik Tok - Attract customers through social media advertisement and promotion 28
Slide 29: Navigating COVID-19
Navigating COVID-19 - China has effectively managed the spread of COVID-19 through strict movement control in 1Q 2020 - 2Q 2020 saw ramp up in business and social activities, customers are gradually resuming shopping and entertainment activities - We see long-term growth of outlet industry intact as
Slide 30: March 2020 - Reopening of Sasseur Outlets
March 2020 - Reopening of Sasseur Outlets Outlet Reopen Date Days of Closure Chongqing 15 March 49 Bishan 15 March 49 Hefei 13 March 46 Kunming 11 March 44 30
Slide 31: Sales Increased on Reopening Day versus Last Year
Sales Increased on Reopening Day versus Last Year Kunming Hefei Chongqing Bishan 11 Mar 13 Mar 15 Mar 15 Mar +171% +57% +131% +228% 31
Slide 32: Spring Sales
Spring Sales 1st Day 1st Day Reopening Outlet Spring Sale Comparison Sale (RMB (RMB Million) Million) Chongqing 5.65 25.76 456% Bishan 1.92 5.46 284% Hefei 2.00 9.93 497% Kunming 1.90 6.01 316% Total 11.47 47.16 411% 32
Slide 33: Spring Sales
Spring Sales Return of shoppers at Sasseur Outlets 33
Slide 34: Potential Pipelines
Potential Pipelines • All acquisitions must be yield accretive • Reduce concentration risk, explore other parts of the World Changchun • Pipeline Properties increased from 3 to 9 ROFR Properties Lanzhou Xi’an Yangzhou Xi’an Guiyang Shanghai Nanjing Changsha Hangzhou Opening Date Sep 2017 Dec 2017 Gu
Slide 35: Investment Merits
Investment Merits 35 SASSEUR (KUNMING) OUTLETS
Slide 36: Key Milestone and Awards
Key Milestone and Awards FTSE EPRA NAREIT Global Emerging Market Index Inclusion1 1 2 3 Best IPO in Singapore Most Promising REIT in Gold Award Retail REITs 2018 Asia (Singapore) (less than USD 1 billion market cap) By: The Asset Asian (Triple A) Awards By: Fortune Times REITs Pinnacle By: 2018 Asia
Slide 37: Investment Merits
Investment Merits Market Leadership: Sasseur Group is the one of the largest operator of outlet 1 malls in China, with 11 malls and over 12 years of operating experience Unique Art-Commerce Business Model: Aligns interests of tenants, 2 unitholders and entrusted managers, with potential to share ups
Slide 38: 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
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