Date of Report

October 1, 2024

Broker Name

UOB Kay Hian

Company Overview

Sasseur REIT is a Singapore-based real estate investment trust focused on outlet malls in China. The REIT aims to provide sustainable returns to investors by leveraging its portfolio of prime retail properties located in key cities across China.

Recent Developments

The report highlights that the Chinese government has announced significant stimulus measures to boost its economy. These initiatives are expected to revitalize consumer spending and enhance the performance of the retail sector, benefiting Sasseur REIT.

Revenue Exposure to China

Sasseur REIT has substantial revenue exposure to the Chinese market through its portfolio of outlet malls. The anticipated increase in consumer confidence and spending following the government’s stimulus measures is likely to positively impact foot traffic and sales at Sasseur’s properties.

Investment Recommendation

• Recommendation: BUY
• Current Price (S$): 0.72
• Target Price (S$): 0.98
• Potential Upside (%): 36.1%

Market Context

With the expected recovery in retail spending driven by the government’s economic initiatives, Sasseur REIT is well-positioned to benefit from increased consumer visits and higher sales at its outlet malls. The company’s strong portfolio in key Chinese cities enhances its growth potential.

Conclusion

Sasseur REIT’s strategic focus on the outlet mall segment and its significant exposure to the revitalizing Chinese economy present a compelling investment opportunity. The anticipated growth in consumer spending positions Sasseur for substantial gains in the coming years.