Company Coverage
Sasseur REIT (SASSR SP) - Sasseur Site Visit: Value Hunters Keep Chongqing Busy
NOT RATED
Current price:
Target price:
Upside:
S$0.635
n.a.
n.a.
Analyst
Highlights
- Our recent visit to Sasseur's Liangjiang and Bishan retail outlets confirmed its leadership in Chongqing's retail outlet market.
- Both outlets continued to see strong occupancy of 100% at Liangjiang and 98.9% at Bishan, supporting Sasseur’s 1H26 sales growth.
- Sasseur REIT trades at 0.77x P/NAV, with an annualised yield of 10.6%. Its double-digit yield and resilient outlet sales are balanced against China risks. Within S-REITs, we prefer CICT, NTTDCR and UIB REIT.
Analysis
- Site visit to Sasseur's two Chongqing outlets. We visited Sasseur REIT’s (Sasseur) Liangjiang and Bishan outlets, which together make up 48% of portfolio valuation and 63% of 1H26 portfolio sales. Management highlighted that retail tenants make up over 95% of stores and pay Sasseur a commission on their sales (10-16% of sales), so the outlets earn more when shoppers spend more. F&B, cinema and entertainment tenants make up less than 5% of stores and pay fixed rent instead.
- Liangjiang: The flagship and anchor asset. Opened in 2008, Liangjiang hosts 374 tenants across 73,373sqm of GFA, anchored by sports brands such as NIKE, FILA, Anta and Adidas. It has stayed fully occupied since 4Q23 and generated Rmb1,274.4m of sales in 1H26 (+7.8% yoy), or 54% of the portfolio total sales. It carries the highest share of international brands in the portfolio (17.7% of revenue) and the largest VIP base, at 1.87m members.
- Bishan: Smaller, but the fastest grower. Bishan is a suburban outlet opened in 2014 with 186 tenants, led by domestic names such as POLOwalk, Anta, Li-Ning and Bosideng. Sports brands make up 32.9% of its gross revenue, the highest in the portfolio. 1H26 sales grew 10.9% yoy to Rmb206.0m, the fastest in the portfolio, while occupancy rose 2.0ppt yoy to 98.9%. Its 637,000 VIP members and family attractions such as a strawberry farm help draw repeat visits.
- Market leader in Chongqing. Sasseur owns two out of four outlet malls in Chongqing, and leads the market in sales. It attributes this to its early mover advantage (Liangjiang opened in 2008), larger sales scale, as well as better brand mix and brand availability than peers. The catchment is large, with Chongqing home to 31.9m residents at end-25, and shoppers are mainly domestic travellers rather than international tourists.
Highlights
- Our recent visit to Sasseur's Liangjiang and Bishan retail outlets confirmed its leadership in Chongqing's retail outlet market.
- Both outlets continued to see strong occupancy of 100% at Liangjiang and 98.9% at Bishan, supporting Sasseur’s 1H26 sales growth.
- Sasseur REIT trades at 0.77x P/NAV, with an annualised yield of 10.6%. Its double-digit yield and resilient outlet sales are balanced against China risks. Within S-REITs, we prefer CICT, NTTDCR and UIB REIT.
Analysis
- Site visit to Sasseur's two Chongqing outlets. We visited Sasseur REIT’s (Sasseur) Liangjiang and Bishan outlets, which together make up 48% of portfolio valuation and 63% of 1H26 portfolio sales. Management highlighted that retail tenants make up over 95% of stores and pay Sasseur a commission on their sales (10-16% of sales), so the outlets earn more when shoppers spend more. F&B, cinema and entertainment tenants make up less than 5% of stores and pay fixed rent instead.
- Liangjiang: The flagship and anchor asset. Opened in 2008, Liangjiang hosts 374 tenants across 73,373sqm of GFA, anchored by sports brands such as NIKE, FILA, Anta and Adidas. It has stayed fully occupied since 4Q23 and generated Rmb1,274.4m of sales in 1H26 (+7.8% yoy), or 54% of the portfolio total sales. It carries the highest share of international brands in the portfolio (17.7% of revenue) and the largest VIP base, at 1.87m members.
- Bishan: Smaller, but the fastest grower. Bishan is a suburban outlet opened in 2014 with 186 tenants, led by domestic names such as POLOwalk, Anta, Li-Ning and Bosideng. Sports brands make up 32.9% of its gross revenue, the highest in the portfolio. 1H26 sales grew 10.9% yoy to Rmb206.0m, the fastest in the portfolio, while occupancy rose 2.0ppt yoy to 98.9%. Its 637,000 VIP members and family attractions such as a strawberry farm help draw repeat visits.
- Market leader in Chongqing. Sasseur owns two out of four outlet malls in Chongqing, and leads the market in sales. It attributes this to its early mover advantage (Liangjiang opened in 2008), larger sales scale, as well as better brand mix and brand availability than peers. The catchment is large, with Chongqing home to 31.9m residents at end-25, and shoppers are mainly domestic travellers rather than international tourists.
NOT RATED
Current price:
Target price:
Upside:
S$0.635
n.a.
n.a.
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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