Sasseur Real Estate Investment Trust (Sasseur REIT) reported distributable income of S$47.3 million for the six months ended Jun 30 2026, up 11.5 per cent year-on-year, underpinned by a 7.4 per cent rise in portfolio sales that lifted rental takings and trimmed finance costs.

EMA rental income – the REIT’s principal revenue measure – increased 4.3 per cent YoY to RMB 350.7 million, comprising a RMB 244.5 million fixed component (+3.0 per cent) and a RMB 106.2 million variable component (+7.4 per cent). In Singapore-dollar terms, EMA rental income came in at S$65.4 million, up 6.8 per cent. The trust declared a distribution per unit of 3.366 Singapore cents, 10.2 per cent higher YoY, payable on 24 Sep 2026 to unitholders on record.

Growth was fuelled by the record first-half sales of RMB 2.34 billion across its four outlet malls. Chongqing Liangjiang retained full occupancy, while Bishan and Kunming were at 98.9 per cent and 99.1 per cent, respectively. Hefei’s occupancy dipped amid asset-enhancement works but has largely been back-filled through advance leasing commitments.

Segmentally, the variable-rent portion benefitted from stronger tenant sales, while the fixed component provided income stability. Lower borrowing costs also supported earnings; a successful onshore refinancing extended debt maturity to 2031 and pushed the weighted average cost of debt down to 3.7 per cent, from 4.4 per cent at end-2025. Aggregate leverage remained low at 25.6 per cent with interest coverage rising to 5.6 times.

Temporary disruption from ongoing asset-enhancement initiatives, coupled with what management termed a “more measured” consumer backdrop in China, weighed on Hefei’s near-term occupancy. Nevertheless, brand collaborations and loyalty programmes kept portfolio-wide VIP membership above five million, generating over 60 per cent of sales.

Looking ahead, the manager is reviewing renewal terms for the Entrusted Management Agreement that expires in Mar 2028, and is exploring future acquisitions in Asia. Recent Chinese policy moves — including a five-year consumption plan and tourism incentives — are expected to buttress demand for value-oriented retail formats such as outlet malls.

Chief executive Cheng Hsing Yuen noted that disciplined asset management and proactive refinancing drove the trust’s double-digit DPU growth despite subdued consumer sentiment. Chairman Vito Xu added that the sponsor will continue to provide operational and financial support, stressing that outlet malls remain well placed to capture long-term consumption trends in China.