Sasseur REIT has reported a 2.2% year-on-year increase in its rental income for the first half of 2025, attributed to a 3% escalation in fixed rent. The company, which operates outlet malls, maintained a high occupancy rate of 98.5%, although tenant sales growth moderated to 0.8% year-on-year during the same period. The announcement comes as Cheng Hsing Yuen prepares to take over as CEO, with plans to continue acquisition efforts in Tier 1.5 cities in China, potentially funded through a mix of debt and equity.
The company’s performance is noteworthy as it navigates a challenging retail environment. The high occupancy rate underscores the resilience of its outlet malls, which continue to attract tenants despite broader economic pressures. Cheng Hsing Yuen’s appointment is expected to bring fresh leadership to the company, with a focus on strategic acquisitions to bolster its portfolio.
Sasseur REIT has maintained a “BUY” recommendation with a target price of SGD0.90, offering a compelling forward yield of 8.6%. This positions the company as an attractive investment opportunity for those seeking stable returns in the real estate sector.
In parallel, UOL Group has reported strong results for the first half of 2025, with operating profit after tax and minority interests (PATMI) reaching SGD207 million, marking a 45% increase year-on-year. The group’s residential earnings were bolstered by robust sell-through rates and strategic landbank replenishment. UOL’s strategy to optimise its total portfolio is expected to enhance recurring income and potentially increase dividends. The redevelopment of Marina Square is highlighted as a key catalyst for future growth, with a maintained “BUY” recommendation and a higher target price of SGD8.80.
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