In a report released on August 15, Lock Mun Yee from CGS-CIMB reiterated a Buy rating on Sasseur Real Estate Investment Trust, with a price target of S$0.85.
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Lock Mun Yee has given his Buy rating due to a combination of factors that position Sasseur Real Estate Investment Trust for growth. The trust reported a stable distribution per unit (DPU) for the first half of 2025, aligning with forecasts, and demonstrated a 3% year-on-year increase in portfolio outlet sales during the second quarter. This growth is supported by a low gearing ratio of 25.8%, which provides the trust with the financial flexibility to pursue inorganic growth opportunities.
Furthermore, the trust’s robust balance sheet, characterized by reduced interest costs and strategic refinancing efforts, enhances its financial stability. The management’s commitment to delivering long-term value through stable and growing distributions, alongside a high portfolio occupancy rate of 98.5%, underscores the trust’s strong operational performance. These factors, combined with the potential for acquisition opportunities and a resilient outlet mall segment, contribute to the positive outlook and Buy rating for Sasseur Real Estate Investment Trust.