This was despite its entrusted manager agreement (EMA) rental income coming in at $30.8 million, 2.1% lower than the previous year. This was due to a 3.3% y-o-y drop in the variable component, while the fixed component cushioned the drop with a 3.0% y-o-y increase.
The group attributed its decline in variable income to sporadic Covid-19 outbreaks in China from August to September, leading to temporary closures of two outlets and reduced shopper traffic, as well as extreme weather in both Chongqing Liangjiang Outlets and Chongqing Bishan Outlets in August which resulted in shortened opening hours in order to reduce the city’s energy consumption.
Total outlet sales for the quarter came in 3.5% lower from 3QFY2021 at RMB962.2 million ($185.1 million), while portfolio occupancy was the highest in four years, surpassing pre-Covid-19 occupancy at 96.9%.
Weighted average lease expiry (WALE) by net lettable area for the quarter stood at 2.7 years, slightly higher than 2.5 years in the previous quarter.
See also: Creative guides for ‘similar level of operating loss’ for 2HFY2025
Units in Sasseur REIT last traded at 71 cents on Nov 10.
Photo: The Edge Singapore/ Albert Chua
