Sasseur REIT’s entrusted management agreement (EMA) income in 3QFY2025 ended Sept 30 rose 4.9% y-o-y to RMB166.3 million.
In SGD, EMA income rose a more moderate 2.6% y-o-y to $30 million.
Of this, the variable component was up 9.7% y-o-y to $47.5 million while the fixed income portion gained 3% y-o-y to $118.7 million.
Outlet sales rose by 10.8% y-o-y to RMB1,062.3 million but gains in RMB were offset by the stronger SGD.
On the capital management front, aggregate leverage crept up slightly to 25.5% as of end-September compared to 24.8% as of Dec 31, 2024. However, debt maturity has been extended to 4.5 years, and weighted average cost of debt has fallen to 4.6% as of Sept 30compared to 5.3% as at Dec 31.
Sasseur REIT received a 10-year green loan of RMB308 million from OCBC China at a competitive rate for onshore refinancing, and 100% of loans are now denominated in RMB to maximise the natural hedging and further improve the cost of debt.
China‘s GDP grew 4.8% y-o-y in 3QFY2025, slower than the previous two quarters. Retail sales rose 3.0% y-o-y in September. Consumer spending remained soft due to concerns over the prolonged property downturn. Overall, the Consumer Confidence Index improved compared to last year, reaching 89.6 in September.
China concluded its Fourth Plenum Session on Oct 23, setting out strategic priorities for its 15th Five-Year Plan (2026–2030). The government reiterated its commitment to substantially boost household consumption, aiming to maintain economic growth within a “reasonable” range while significantly increasing the share of household consumption in GDP.
The Plenum also signaled stronger fiscal and credit support for jobs, income growth, and consumer confidence, positioning domestic demand as a key driver of the next phase of growth.
