SASSEUR REIT - Growth in a Sunrise Industry - First Listed Outlet Mall REIT in Asia
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SASSEUR REIT – Growth in a Sunrise Industry
First Listed Outlet Mall REIT in Asia
CGS-CIMB – Okasan Securities Investor Presentation
4 Mar 2021
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 26 February 2021
published on SGX Net.
This presentation is for information only and does not constitute or form part of an offer, invitation or solicitation of any offer to
purchase or subscribe for any securities of Sasseur REIT in Singapore or any other jurisdiction nor should it or any part of it
form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. The value of the units in
Sasseur REIT ("Units") and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or
guaranteed by, the Manager, DBS Trustee Limited, as trustee of Sasseur REIT, Sasseur Cayman Holding Limited, as sponsor
of Sasseur REIT or any of their respective affiliates. An investment in the Units is subject to investment risks, including the
possible loss of the principal amount invested. Investors have no right to request that the Manager redeem or purchase their
Units while the Units are listed. It is intended that unitholders of Sasseur REIT may only deal in their Units through trading on
Singapore Exchange Securities Trading Limited (the "SGX-ST"). Listing of the Units on the SGX-ST does not guarantee a
liquid market for the Units. The past performance of Sasseur REIT is not necessarily indicative of the future performance of
Sasseur REIT.
This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance,
outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of
risks, uncertainties and assumptions. These forward-looking statements speak only as at the date of this presentation. No
assurance can be given that future events will occur, that projections will be achieved, or that assumptions are correct.
Representative example of these factors include (without limitation) general industry and economic conditions, interest rate
trends, costs of capital and capital availability, competition from similar developments, shifts in expected levels of rental
revenue, changes in operating expenses, property expenses, governmental and public policy changes and the continued
availability of financing in the amounts and the terms to support future business.
Investors are cautioned not to place undue reliance on these forward-looking statements which are based on the current view
of management on future events. 2
Content
Section 1 Key Investment Highlights
Section 2 Overview of PRC’s Outlet Market
Section 3 About Sasseur REIT
Section 4 About Sasseur Group
Section 5 Entrusted Management Agreement (“EMA”) Model
Section 6 4Q 2020 Financial Results
Section 7 Capital Management
Section 8 Portfolio Update
Section 9 Investment Merits
3
Key Investment Highlights
Retail Outlet – A Sunrise Industry Sasseur - Leading Outlet Operator
Fast-growing retail outlet sector
projected to become world’s Leading privately-owned outlet mall
largest by 20301 operator
Growing middle-class population Deep understanding of local retail
& spending power market & diverse brand relationships
Exposure to high-growth tier-2 2 ROFR and 9 pipeline projects for
PRC cities potential acquisition
(1) Source: China Insights Consultancy
(2) Defined as the sales revenue opportunity available in the outlet industry after considering information such as economic development, population size, residents’
disposable income and outlets penetration
4
Growth of PRC Outlet Market
Between 2015 to 2019, the No. of outlets which surpassed
RMB >1 billion sales had more than doubled
16 34
outlets
outlets
Total Sales Total Sales
RMB >30 Billion RMB >70 Billion
Year 2015 Year 2019
Source: Outletscn 奥特莱斯网 5
Projected Growth of PRC Outlet Market
Large Supply Gap Presenting Young Industry with Room
Retail Market Growth Projection
Upside Opportunity for Further Growth
China Retail Sales China’s Outlet Industry China’s Outlet Industry
(RMB billion) (RMB billion) (RMB billion)
Supply
US$96.2 US$91.5
gap
145 0.5
CAGR:
CAGR:
24.2% 24.2% CAGR:
17.9%
12,035
Supply 609
19.8% 144.9 640
49 gap
30.6
4,884 CAGR:
8.4% 24.2%
502
335 49.1
5.6% 145
1263 1,655
49
2016 2021E 2016 2021E 2030E
2030E
2016 2021E
Outlets Retail Mall
Online Platform Department Store
Outlet Industry Year 2030 Projection
A young industry – outlet market size is Supply gap represents market
PRC vs U.S.A
only approximately 1% of online platform opportunity for the outlet industry
US$96.2B vs US$91.5B
6
Source: China Insights Consultancy - Independent Market Research Report
PRC’s Outlet Fundamentals Remain Attractive
Fast Growing Middle High Demand for
Rising Affluence
Class Population Luxury Brands
~850M
Annual Spending
~500M
12.1% US$111
CAGR
Billion
Projected to grow 2018 2030 Chinese consumers
12.1% annually from Chinese population purchase more than a
2015 to reach 216 with annual income third of the world’s
million in 20211 > US$10,0002 luxury goods3
1. Source: China Insights Consultancy - Independent Market Research Report
2. World Bank, Legal & General IM Estimates 7
3. Business Times Article “Covid-19 has trapped US$111 billion of luxury spending in China”, 9 July 2020.
About Sasseur REIT
First
Outlet Mall REIT
listed in Asia
8
Sasseur REIT Structure
Chairman Xu L Catterton Asia Ping An Real Estate
Sasseur Cayman
100.0% Public
Cayman HoldCo 57.91% 42.09%
REIT Manager Sasseur Trustee
REIT
100%
100.0% SG HoldCo
Bishan Offshore Hefei Offshore Kunming Offshore
Offshore
HoldCos HoldCos HoldCos
100.0% 100.0% 100.0%
Onshore
Entrusted Bishan PRC Hefei PRC Kunming PRC
Manager HoldCo HoldCo HoldCo
15.0%
Entrusted 85.0%
Management
Chongqing
Agreements
PRC HoldCo (1)
100.0% 100.0% 100.0% 100.0%
Chongqing Bishan Hefei Kunming
Outlets Outlets Outlets Outlets
(1) Holds 40% interest in Chongqing West Outlets Brand Discount Commercial Co., Ltd. and Shanghai Pacific Rehouse Service Chongqing Co., Ltd.. Remaining 60% interest is 9
held by Shanghai Pacific Rehouse Service Co. Ltd., an independent third party unrelated to the Sponsor (Sasseur Cayman Holding Limited) or Sasseur REIT
About Sasseur Group – Strong Sponsor
Introduction to Sasseur Group
Changchun
▪ Founded in 1989, Sasseur is one of the leading premium
outlet groups in the People’s Republic of China (“PRC”), that
focuses on the development and operation of retail outlet
malls in the PRC Lanzhou
Yangzhou
Xi’an Nanjing
▪ As of Nov 2020, Sasseur manages 13 outlet malls in 12 Hefei
major Chinese cities Bishan Hangzhou
Chongqing
Changsha
▪ Leverages on the founder’s passion for art and culture to Guiyang Xiamen
develop and design all of Sasseur’s outlet malls, thus
offering a unique lifestyle experience for its customers
Kunming 31 years of history
Founded by Vito Xu Supported by Strategic Shareholders
▪ Vito Xu is the founder and chairman of ▪ Largest pan-Asian consumer-focused
Sasseur with a wealth of experience in the private equity firm that operates within
fashion industry. a global L Catterton platform
▪ In 1992, he entered the clothing industry ▪ Manages over USD 1.6 billion AUM
and created his own women’s wear (USD 2.6 billion with co-investments)(1)
fashion line – Sasseur
▪ In 2008, he built the first Sasseur outlet in ▪ Affiliate of the Fortune 500 company
Chongqing, an art piece that has won Ping An Insurance
numerous awards ▪ Professional real estate investment,
▪ Recipient of numerous prestigious awards development and management
platform of Ping An Insurance
▪ AUM of approximately RMB 420 billion
(USD 60 billion)(2)
(1) Provided by L Catterton Asia on 19 September 2017 10
(2) Extracted from Ping An Real Estate website (http://realestate.pingan.com/realestate/html/about.html) on 2 January 2020About Sasseur Group – Strong Sponsor
Highly Recognised Enterprise One of the Leading Operators in China’s Outlet Industry
▪ 2019 Chongqing Top 100 Enterprise (Service Industry) – ▪ 13 Outlets Under Management, 2 More in the Pipeline
Ranked 15th place
▪ Among the outlets in operation, 5 outlets achieve sales
▪ 2019 Chongqing Top 100 Enterprise – Ranked 39th Place above RMB 1 billion in 2019
with Revenue Over RMB 10 Billion
▪ 1,700 International and Local Brands
▪ 2019 China Top 500 Enterprise in Service Industry –
Ranked 313th place ▪ >55 Million Outlet Visitors in 2019
▪ Awarded National Enterprise Credit Grade AAA ▪ 4.2 Million VIP Members across All Outlets
Source: Sasseur Group 2019 Performance Figures
2019 Sales Revenue
> RMB 2.5 Billion > RMB 1.5 Billion > RMB 1.5 Billion > RMB 1.0 Billion > RMB 1.0 Billion
Sasseur (Chongqing) Outlet Sasseur (Nanjing) Outlet Sasseur (Xi’an) Outlet Sasseur (Hefei) Outlet Sasseur (Guiyang) Outlet
11Sponsor’s Unique “Super Outlet” Business Model
“1” represents the outlet mall business platform and “N” reflects the various
lifestyle options offered in each of the outlet malls
Unique lifestyle experience based on a combination of art in the design and
decoration of its outlet malls, and as a one-stop shopping and lifestyle
experience, provides resilience against competition from e-commerce
A x (1+N) x DT
12Sponsor’s Unique “Super Outlet” Business Model
Integrated destination shopping combining “1+N” business model in the design
1 and operation of Sasseur REIT’s outlet malls
Enhances resilience to competition from online retail platforms by providing a
2 unique lifestyle shopping experience
3 Robust and proactive brand management
4 Alignment of interest with tenants through sales-based leases
5 More than 1.9 million VIP members across Sasseur REIT’s portfolio
13Sasseur – Leading Private Outlet Specialist in PRC
Leading private outlet specialist in PRC Benefits of being a private outlet specialist
Applicable
Outlet Operator Different Types of Outlet Operators in China Not applicable
Outlets
Operators category
Operational Brand Understanding Financial
Experience Resources of Local Market Strength
Local Private
Sasseur 砂之船 13 Local Private
Outlet Specialist Outlet
Specialists
Beijing Capital Real Estate
13
Grand 首创 Company SOE Retail
Groups
Shanshan 杉杉 Conglomerate 9 Real Estate
Companies
SOE Retail International
Bailian 百联 7
Group Outlet
Specialists
Wangfujing Real Estate
SCITECH Company 7 Mitigated by Sasseur’s access to strategic partners
王府井赛特 (L Catterton Asia & Ping An Real Estate)
International
RDM 6
Outlet Specialist
Source: Company Website 14Outlet’s Competitive Edge Against Other Retail Models
Outlets Department Store Shopping Mall Online Platform
Luxury and high-end
Product Mix Middle to high-end brands Middle to high-end brands Low priced products
brands
Pricing Strategy Large Discounts Normal Normal Low
Consumer Experience ✓ (small area with compact ✓ (no in-store shopping
layout) experience)
Location Suburbs City Center City Center -
Segment Middle Class Mass Market Mass Market Mass Market
Possibility of counterfeit
Authenticity ✓ ✓ ✓
goods
Brand Owners Customers
▪ Advantages Over Online ▪ Better Shopping Experience
Outlet Malls’
▪ Higher Profit Margin Competitive ▪ Product Authenticity
▪ Quicker Payback Period Edge ▪ High Discounts
▪ Enhanced Inventory Management ▪ Access to a Wide Range of Products
Why outlet is generally not impacted by e-commerce
▪ Product mix - per transaction via online platform ~ RMB200 vs per transaction at the outlet malls ~ RMB800/1000 => minimal product overlap
▪ Economics – online sales of outlet brands incur ~ 20% commission vs 10-16% commission at the outlets.
▪ Authenticity – 10X penalty / reward for selling by merchants / reporting by customers, of fake goods ensure no fakes goods at outlet
15
Source: China Insights Consultancy - Independent Market Research ReportEntrusted Management Agreement (EMA) Model
SASSEUR
SASSEUR(KUNMING) OUTLETS
(BISHAN) OUTLETSEntrusted Management Agreement Model
Business Model REIT Income Model
Outlet Sales Gross Revenue EMA Resultant Rent EM Base Fee Residual
Outlets Variable Component
(% of Sales)
Chongqing 4.0%
FC Bishan 4.5%
~10-16% Hefei 5.5%
Commission Kunming 5.0%
VC
EM Performance Fee
▪ GR = Total rental receivable + ▪ EMA Resultant Rent (“RR”) ▪ EM Base Fee: Up to ▪ EM Performance Fee:
Income from permissible comprises FC and VC 30% of GR to the 60% x (GR - RR - EM Base Fee)
investments ▪ REIT paid EMA Resultant Rent Entrusted Manager ▪ Payment to REIT:
before EM Base Fee 40% x (GR - RR - EM Base Fee)
▪ VC is pegged to the Sales of
the Outlet
The EMA Model aligns the interest of the Operating Manager with the REIT.
174Q 2020 Financial Results
SASSEUR (KUNMING) OUTLETS4Q 2020 Key Highlights
Sasseur REIT share price has recovered 56%
from a low of $0.525 in April 2020 to $0.820 in December 2020
4Q 2020 Q-o-Q1 Y-o-Y2
EMA Rental Income3 Sales
Occupancy
RMB 1,246.4
S$32.3 million 6.5% 2.5% 93.5%
million
Distributable Income
S$23.3 million 9.9% 19.7%
Distribution Per Unit4 Weighted
Average Aggregate
1.935 SG cents 9.7% 18.8% Leverage
Lease
NAV Per Unit Expiry5 27.9%
2.6 years
91.40 SG cents (0.8%) 2.5%
1. Q-o-Q comparison refers to 4Q 2020 vs 3Q 2020
2. Y-o-Y comparison refers to 4Q 2020 vs 4Q 2019
3. Excluding straight-line accounting adjustments
4. For 4Q 2020, Sasseur REIT continues to distribute 100% of the distributable income to Unitholders
5. Weighted average lease expiry by net lettable area
19FY 2020 Key Highlights
FY 2020 FY 2019 Y-o-Y1
EMA Rental Income2 Sales
Occupancy
RMB 3,727.2
S$115.8 million S$122.1 million (5.2%) 93.5%
million
Distributable Income
S$78.7 million S$77.9 million 1.0%
Distribution Per Unit3 Weighted
Average Aggregate
6.545 SG cents 6.533 SG cents 0.2% Leverage
Lease
NAV Per Unit Expiry4 27.9%
2.6 years
91.40 SG cents 89.20 SG cents 2.5%
1.. Y-o-Y comparison refers to FY 2020 vs FY 2019
2. Excluding straight-line accounting adjustments
3. For 4Q 2020, Sasseur REIT continues to distribute 100% of the distributable income to Unitholders
4. Weighted average lease expiry by net lettable area
20Financial Results
SASSEUR (CHONGQING) OUTLETS
214Q 2020 DPU Increased 18.8% vs 4Q 2019
Change Change Change
4Q 2020 3Q 2020 4Q 2019 FY 2020 FY 2019
% % %
Fixed Component
102.4 102.4 - 99.4 +3.0 409.6 396.3 +3.3
(RMB mil)
Variable Component
56.7 50.2 +13.1 63.1 -10.0 170.2 221.3 -23.1
(RMB mil)
EMA Rental Income1
159.1 152.6 +4.3 162.5 -2.1 579.8 617.6 -6.1
(RMB mil)
EMA Rental Income1, 2
32.3 30.3 +6.5 31.5 +2.5 115.8 122.1 -5.2
(S$ mil)
Distributable Income
23.3 21.2 +9.9 19.5 +19.7 78.7 77.9 +1.0
(S$ mil)
DPU (SG cents) 1.935 1.764 +9.7 1.629 +18.8 6.545 6.533 +0.2
1. Excluding straight-line accounting adjustments.
2. Using the average SGD:RMB rate for the period 4Q 2020 4.9223, 3Q 2020 5.0396, 4Q 2019 5.1675, FY 2020 5.0085 and FY 2019 5.0600.
22Healthy Balance Sheet
S$ mil 31 Dec 2019 31 Dec 2020
Investment properties 1,587.2 1,651.0
Cash and short-term deposits 154.7 155.9
Other assets 28.5 51.2
Total Assets 1,770.4 1,858.2
Loans and borrowings 478.6 504.2
Other liabilities 222.6 248.5
Total Liabilities 701.2 752.8
Net Assets 1,069.2 1,105.4
NAV per unit (cents) 1 89.20 91.40
Aggregate Leverage 27.8% 27.9%
1. Based on units in issue and issuable of 1,209,412,000 and 1,198,678,588 as at 31 December 2020 and 31 December 2019 respectively.
23Distribution Details
Distribution Period 1 1 October to 31 December 2020
Distribution Per Unit1 1.935 Singapore cents
1. Based on 100% distribution pay-out ratio
Distribution Timetable
Notice of Books Closure Date 26 February 2021
Ex-dividend Date 11 March 2021
Books Closure Date 12 March 2021
Distribution Payment Date 26 March 2021
Sasseur REIT has delivered total return of 24.6% since IPO2
2. Total return is calculated based on closing price of $0.820 on 31 Dec 2020 and total DPU since IPO
24Distribution History
Despite the pandemic, 3Q 2020 & 4Q 2020 DPU had exceeded similar period in 2019.
Distribution Per Unit (SG cent)
2
1.935
1.9
1.8 1.764
1.656
1.7 1.64 1.629
1.608
1.6
1.5 1.512
1.4
1.334
1.3
1.2
1Q 2Q 3Q 4Q
2019 2020 25Sasseur REIT Yield vs Other Asset Classes
The only retail S-REIT with positive return in 20201
2
Sasseur REIT Distribution Yield 8.0%
3
Average of the 43 S-REITs and Property Trust 6.4%
3
STI Index 3.7%
CPF Ordinary Account Interest Rate 2.5%
MAS Benchmark Govt Bond 10 Year 4 0.8%
5
Singapore Fixed Deposit Rate 0.3%
Notes:
1. Source: SGX Publication “SREITs & Property Trusts Chartbook - January 2021” Report
2. Distribution yield based on annualised DPU and closing price of S$0.820 as at 31 December 2020
3. Based on 12M Average Dividend Yield
4. Based on 10 Year Yield
5. 12M Bank fixed deposit rates from MAS as of 31 December 2020
26
Source: Bloomberg, SGX, Central Provident Fund (CPF) Board, data as of 31December 2020Capital Management
SASSEUR (HEFEI) OUTLETS
27Prudent Capital Management
Debt Profile 4Q 2020 4Q 2019
Total Debt (SGD million) 512 492
Aggregate Leverage 27.9% 27.8%
Interest Coverage Ratio 7.8 times 4.7 times
Weighted Average Cost of Debt1 3.2% p.a. 4.4% p.a.
Average Debt Maturity 2.2 years 2.7 years
Debt Headroom2 8233 554
Loan Facilities Onshore Offshore
Currency RMB SGD USD
Outstanding ~SGD 271 million SGD 221 million USD 20 million
Quantum4 (RMB 1.34 billion) (~RMB 1.09 billion) (~RMB 0.13 billion)
1. Weighted average cost of debt based on 3-month period for 4Q 2020 is 3.2% p.a. (4Q 2019: 4.4% p.a.)
2. Debt headroom is computed based on total assets and assuming a corresponding increase in total assets with new debts raised
3. 50% leverage limit is based on MAS’s revised leverage limit with effect from 16 April 2020
28
4. Debt amounts are translated using exchange rates as at each period endPortfolio Update
SASSEUR (HEFEI) OUTLETSPortfolio Summary
Portfolio
Valuation* : 8,142 mil
NLA : 312,844 sqm
Occupancy ^ : 93.5%
Hefei Outlet Mall
*Based on independent valuation as at
31 Dec 20 by JLL (RMB million). Valuation : 2,758 mil
^Occupancy for 4Q 2020 NLA : 144,583 sqm
Occupancy : 94.9%
Chongqing Outlet Mall
Bishan Outlet Mall Kunming Outlet Mall
Valuation : 2,982 mil
Valuation : 809 mil Valuation : 1,593 mil
NLA : 50,885 sqm
NLA : 47,308 sqm NLA : 70,067 sqm
Occupancy : 81.4% Occupancy : 95.8%
Occupancy : 100% 304Q 2020 Outlet Sales Summary
Significant 12.2% sales improvement as compared to 3Q 2020
4Q 2020 4Q 2020 vs 4Q 2020 vs FY 2020 FY 2020 vs
Outlets Sales 4Q 2019 3Q 2020 Sales FY 2019
(RMB’mil) (%) (%) (RMB’mil) (%)
Chongqing 630.5 -6.4 +6.2 1,852.3 -20.9
Bishan 131.8 +3.9 +24.1 368.5 -19.7
Hefei 275.8 -18.4 +23.6 845.1 -25.9
Kunming 208.3 -12.0 +11.0 661.3 -25.2
Portfolio 1,246.4 -9.3 +12.2 3,727.2 -22.8
1. 4Q 2020: 01 Oct 2020 - 31 Dec 2020
2. 3Q 2020: 01 Jul 2020 - 30 Sep 2020
3. 4Q 2019: 01 Oct 2019 – 31 Dec 2019
4. FY 2020: 01 Jan 2020 - 31 Dec 2020
5. FY 2019: 01 Jan 2019 - 31 Dec 2019 31
SASSEUR (HEFEI) OUTLETSPortfolio Occupancy
4 Outlets enjoy stable occupancy
100.0% 100.0%
96.5% 95.8%
93.3% 94.9% 93.1% 93.5%
81.5% 81.4%
3Q20 4Q20 3Q20 4Q20 3Q20 4Q20 3Q20 4Q20 3Q20 4Q20
重庆 ChongQing 璧山 Bishan 合肥 Hefei 昆明 Kunming 项目组合 Portfolio
4Q 2020 vs 3Q 2020
32Weighted Average Lease Expiry (WALE)
Deliberate short lease to optimise tenant mix
Lease Expiry by NLA & Gross Revenue WALE by :
90.0%
80.7%
NLA 2.6 years
80.0%
Gross Revenue 1.1 years
70.0% * Marginal increase due to renewals and new leases
60.6%
60.0%
50.0%
40.0%
30.0%
23.8%
20.0%
10.8%
10.0% 7.1% 7.8%
4.8% 4.4%
0.0%
2021 2022 2023 2024 & Beyond
by NLA by Gross Revenue
As at 31 December 2020
33
SASSEUR (HEFEI) OUTLETSVIP Members - Growth by Outlets
Total VIP members increased 33% from end 2019 to reach 2.11 million
Members in '000
2,400
2108.2
2,100
1,800
1,584.8
1,500
1,200
900
671.0 645.6
600 465.9
325.7
300
0
Chongqing Bishan Hefei Kunming Total
2017 2018 2019 2020
34Well Diversified Trade Mix
Breakdown of NLA1 by Trade Mix Breakdown of Revenue2 by Trade Sector
Ad-hoc Outlet, Kids Amusement Park 0.8% Lifestyle 0.8%
Shoe Wear 3.9% 2.0% Ad-hoc Outlet 1.3% Anchor Tenants 0.6%
Children 4.1%
Miscellaneous
Kids Amusement 3.6%
Park 4.5% F&B 3.8%
Lifestyle 4.7% Shoe Wear 4.3%
Children 5.3%
Miscellaneous
Fashion 35.8%
6.5%
Fashion 44.1%
Sports 12.4%
F&B 6.7%
Anchor Tenants International
7.0% Brands 14.0% International
Brands 22.8%
Sports 10.9%
Fashion, Sports and International Brands
60.7% 79.3%
1. As percentage of the portfolio’s net lettable areas as at 31 Dec 2020 35
2. As percentage of the portfolio’s gross revenue as at 31 Dec 20206 Keys Areas of Active Asset Management Strategy
RMB 10 mil 3+2 Leveraging on VIP Tenant Mix Synergy in
Sales Promotions All Media Membership Review Operations
Elevating more • 3 key • Social Media • Comprehensive • Frequent review Two outlets, one
brand tenants in events for members of tenant mix operation
Sasseur Outlets to • Joint programs service • Introduce
the year
achieve RMB 10 with various • Widen the upcoming Merging the
million sales • 6 thematic media sources for new brands operations of both
events members • Improve the Chongqing and
3 Strategies • 6 brands’ • Continued use • Enhance varieties Bishan to achieve :
• Raising events of traditional members • Improve overall
awareness media like T.V. loyalty image • Higher sales
• More programs • Improve • Economies of
promotional • Widen shopping scale
activities coverage in all experience • Efficient
• Increase social, news • Enhance the inventory
publicity and traditional Platinum
attractiveness management
media platforms of all stores to
shoppers
Gold
Normal
36Exciting Promotional Activities to draw Shoppers
Year-End Promotional Events to Attract Shoppers
37Asset Enhancement Initiatives – Chongqing
Proactive Lease Management : Tenant Mix Reconfiguration
Chongqing Outlets
The AEI saw improvement
in 15,000sqm of floor area
& increased efficiency.
Brought in 44 new brands
to the outlet.
Expansion of Young and Trendy Ladies’ Apparel
Trendy Sports Apparel & Fashion
38Asset Enhancement Initiatives – Hefei
Completion of Sports Section at Block B, Hefei Outlets
39Chongqing Outlets
Sales
RMB 'Mil Chongqing
750 673
609 630
580 593
600
480
450 396
300 233
150
-
1Q 2Q 3Q 4Q
2017 2018 2019 2020
Year Commenced Operations Sep 2008 Outlet Members
(‘000)
GFA (sqm) 73,373
671
635
650 586 36
NLA (sqm) 50,885 49
514 530 57
486 16
Occupancy Rate (%, 31 Dec 20) 100 500 28
406 79
341 65
No. of Tenants (31 Dec 20) 389 350 302 635
39 586
514 530
486
+39 Space, Adidas, Coach, 406
Top Brands/Tenants 200 202 341
Ports, 百貂汇 302
100
Car Park Lots 500 50
2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020
40
Valuation (RMB mil, 31 Dec 20) 2,982 Existing NewBishan Outlets
Sales
RMB 'Mil Bishan
150
125 127 132
114
106
100
93
79
52
50
-
1Q 2Q 3Q 4Q
2017 2018 2019 2020
Year Commenced Operations Oct 2014
Outlet Members
GFA (sqm) 68,791 (‘000)
350 326
NLA (sqm) 47,308 301
284 25
290 256 263 17
21
231 7
Occupancy Rate (%, 31 Dec 20) 81.4 230 204 25
182 26
155 23
No. of Tenants (31 Dec 20) 170 27 284 301
194 256 263
28 231
182 204
110 155
Adidas, Nike, Fila, 127
Top Brands/Tenants 50
+39 Space, Fila, Polo
2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020
Car Park Lots 400
Existing New
Valuation (RMB mil, 31 Dec 20) 809
41Hefei Outlets
Sales
RMB 'Mil Hefei
400
338
300 273 286 276
243
218 223
200
128
100
-
1Q 2Q 3Q 4Q
Year Commenced Operations May 2016 2017 2018 2019 2020
Outlet Members
GFA (sqm) 147,316
(‘000)
NLA (sqm) 144,583 646
650
573 72
550 522 52
Occupancy Rate (%, 31 Dec 20) 94.9 478
440 43
450 38
352 88
No. of Tenants (31 Dec 20) 345 350 291 61 573
249 522
42 478
250 203
46 440
Adidas, Coach, Nike, Fila, 352
Top Brands/Tenants 150 67
249
291
Skechers 203
136
50
Car Park Lots 1,566 2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020
42
Valuation (RMB mil, 31 Dec 20) 2,758 Existing New SASSEUR (HEFEI) OUTLETSKunming Outlets
Sales
RMB 'Mil Kunming
250 229 238 237
208.3
200 180 188
150
143
122
100
50
-
1Q 2Q 3Q 4Q
2017 2018 2019 2020
Year Commenced Operations
Outlet Members
Dec 2016
(‘000)
GFA (sqm) 88,257 550
466
446
NLA (sqm) 70,067 450 417 20
390 29
374 27
322 16
350 52
Occupancy Rate (%, 31 Dec 20) 95.8
242 80
250 417 446
177 65 374 390
No. of Tenants (31 Dec 20) 261 159 322
150 18
242
63 177
Nike, Adidas, +39 159
Top Brands/Tenants 50 96
Space, FILA, 周大福
2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020
Car Park Lots 2,000
Existing New 43
Valuation (RMB mil, 31 Dec 20) 1,593 SASSEUR (HEFEI) OUTLETSPotential Pipelines
• All acquisitions must be yield accretive
• Reduce concentration risk, explore other parts of the World
Changchun
• 3 new projects (Suzhou, Nanjng II, Shijiazhuang) added in
4Q2020, total Pipeline Properties increased from 9 to 12
Shijiazhuang
ROFR Properties Lanzhou Xi’an
Nanjing &
Yangzhou
Shanghai
Nanjing II Suzhou
Xi’an Guiyang Changsha Hangzhou
Guiyang Xiamen
Opening Date Sep 2017 Dec 2017
Shenzhen
GFA (sqm) 141,708 193,520
Car Park Lots c.2,000 c.1,000
Opening Soon
Pipeline Properties
Nanjing Hangzhou Changchun Changsha Lanzhou Yangzhou Xiamen Suzhou Nanjing II Shijiazhuang Shanghai Shenzhen
Opening May Jun Sep Dec Dec Sep Nov Sep Apr Sep
~ 2022 ~ 2022
Date 2015 2011 2017 2018 2019 2020 2020 2021 2022 2022
GFA (sqm) 149,875 45,873 172,128 210,600 ~100,000 114,650 74,987 ~77,843 ~100,000 ~83,000 ~109,000 ~150,000
Car Park
c.8,000 c.5,000 c.4,000 c.2,084 c.2,500 c.1,200 c.1,500 c. 1,500 c. 1,100 c. 3,500 c.2,500 c.2,200
Lots
44Investment Merits
45
SASSEUR (KUNMING) OUTLETSKey Milestone and Awards
FTSE EPRA NAREIT Global Emerging Market Index Inclusion1
1 2 3
Most Promising REIT in Best Retail REIT (Platinum) Best REIT Deal in
Asia Best CEO (Platinum) Southeast Asia 2018
By: Fortune Times REITs Pinnacle Best Investor Relations (Gold) By: Alpha Southeast Asia 12th Annual
Awards 2018 By: 6th Asia Pacific REITs Awards 2019 Best Deal & Solution Awards 2018
4 5 6
Best Retail REIT (Platinum)
REIT Company of The Best CEO (Platinum)
Best Commercial REIT
Year – Singapore 2019 Best Investor Relations (Platinum) Asia 2020
By: International Investor Magazine By: 7th Asia Pacific REITs Awards 2020 By: Capital Finance International
1. Since 23 December 2019.
46Investment Merits
Market Leadership: Sasseur Group is one of the largest operator of outlet
1 malls in China, with 13 malls and over 12 years of operating experience
Unique Art-Commerce Busines model : Full alignment of interests of tenants,
2 REIT unitholders, the REIT and entrusted managers, with the potential for
sharing upsides
Proactive Asset Management Strategy : Focus on asset enhancement and
3 organic growth and yield accretive acquisitions
Resilient Retail Segment : High growth sector offering attractive value-for-
4 money branded products that cater to the rising aspirations and demand of
the expanding Chinese middle class
Strong Partnerships: Longstanding and strong business relationships with
5 leading premium international and local retail brands
47Why Sasseur REIT ?
EMA Model
Strong
Growth
Potential
13
Outlets
Leading
Resilient Outlet
Retail Operator
Segment in China
Sasseur
Strong
REIT
Interest Attractive Ongoing AEI
Alignment Valuation
through
EMA 8.0% Yield
Leveraging on Strong Model Growth
Sponsor Support Potential
Chongqing Hefei
✓ 2 ROFR, 9 pipelines AEI &
Acquisition
48Thank 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 038987You can also read
