Sasseur REIT FY2025: DPU 6.138¢ (+0.9%), EMA Income RMB682M +2.7%, Outlet Sales RMB4,599M, Leverage 25.1%

Sasseur REIT FY2025 (year ended 31 December 2025) delivered a resilient performance against a challenging China macro backdrop, with EMA rental income up 2.7% in RMB terms, DPU growing 0.9% YoY, and aggregate leverage maintained at a sector-low 25.1%.

EMA Rental Income S$124.2M / RMB682.3M (+2.7% YoY; Fixed Component RMB474.8M +3.0%; Variable Component RMB207.5M +2.2%). DPU 6.138¢ (+0.9%; FY2024: 6.082¢). Total Outlet Sales RMB4,599.0M (+2.6%; FY2024: RMB4,482.1M). Shopper Traffic 17.0M (+23.2%). VIP Members 4.9M (FY2024: 4.2M). Portfolio Occupancy 98.8%. Portfolio Valuation RMB8,363M / S$1,536.3M (-0.7% RMB; -2.9% SGD due to FX). Total Assets S$1,740.9M. NAV/unit S$0.79. Units 1,260M.

Aggregate Leverage 25.1% — lowest in the S-REIT sector. ICR 4.7x. Avg debt maturity extended to 4.2yr (FY2024: 2.5yr). Borrowing cost 4.4% (-90bps YoY). 100% RMB-denominated debt (natural hedge). KEY MOVE: proactively refinanced SGD/USD offshore debt with RMB borrowings, eliminating FX risk on liabilities; obtained maiden Green Loan; secured up to RMB906M of new 5-year onshore RMB facilities in early 2026 to early-refinance 2028 maturities at materially lower cost.

Chongqing Liangjiang (Flagship): Outlet Sales RMB2,547.4M (+5.1%); Traffic 7.12M; Val RMB3,270M (+2.6%). Leading performer. Phase 1 A/C upgrade completed Jun 2025.

Chongqing Bishan: Outlet Sales RMB391.3M (+3.7%); Occ improved to 99.4% (+2.4pp); Val RMB761M (-2.4%). 30+ new brands introduced.

Hefei: Outlet Sales RMB996.0M (-3.1% — traffic surge +67.7% to 5.50M but conversion impact from AEI disruption); Val RMB2,774M (-2.3%). Sep 2025 AEI: children zone reconfigured to sports-concept area. 2026 AEI: former cinema to be converted to F&B zone. LEED Gold certified.

Kunming: Outlet Sales RMB664.3M (+1.7%); Traffic 3.16M; Val RMB1,558M (-3.5%). Hotel integration (Hantang Xiyue, 8,200sqm). LEED Gold certified.

Sasseur REIT's EMA model is structurally unique: the Sponsor (Sasseur Group) bears ALL operating expenses of the outlets; REIT receives EMA rent = Fixed Component (3% annual step-up) + Variable Component (% of outlet sales: Liangjiang 4.0%, Bishan 4.5%, Hefei 5.5%, Kunming 5.0%) + Performance Sharing. This means REIT income is largely insulated from operating cost inflation, providing a structurally superior NPI margin compared to standard commercial REITs.

CEO transition: Tan Hong Lye Cecilia stepped down 28 Oct 2025 (paid S$443,264 FY2025, 100% fixed). Cheng Hsing Yuen appointed CEO-Designate 14 Aug 2025, assumed office 29 Oct 2025 (paid S$313,010 for partial year, 36% fixed / 64% bonus). CFO: Xie Jianfeng resigned 26 Sep 2025; Ella Jia appointed CFO Jan 2026.

Sasseur REIT offers a structurally unique China retail exposure: the EMA model provides a near-guaranteed income floor (Fixed Component with 3% annual step-up) plus a variable kicker from outlet sales performance, with operating cost risk sitting entirely with the Sponsor. At 25.1% leverage — sector-lowest — and with borrowing costs having been reduced 90bps in a single year, the balance sheet is in strong shape. The main risk is China macro / consumer sentiment, which affected Hefei outlet sales (-3.1%) and led to valuation softness (-0.7% RMB terms). Resolution of the RMB906M refinancing in 2026 will further reduce financing costs and provide further DPU support.