Investor RelationsFAQ

About Sasseur REIT

1. What is Sasseur REIT's investment mandate?

Sasseur REIT is established with the investment mandate to invest, directly or indirectly, in a diversified portfolio of income-producing real estate which is used primarily for retail outlet purposes, as well as real estate related assets in connection with the foregoing purposes, with an initial focus on Asia.

2. Who are the Manager and Sponsor of Sasseur REIT?

The Manager of Sasseur REIT is Sasseur Asset Management Pte. Ltd. — an indirect wholly-owned subsidiary of Sasseur Cayman Holding Limited (the Sponsor) which is part of Sasseur Group, one of the leading premium outlet operators in China. To find out more about our Sponsor, click here.

3. What are Sasseur REIT's growth strategies?

Sasseur REIT's key growth strategies are:

• To achieve growth in revenue and sales and maintain optimal occupancy levels, and implementing proactive policies to improve the yields and enhance organic growth
• To pursue selective acquisitions of quality income-producing properties used mainly for outlet mall purposes initially in China and subsequently in other countries
• To realise properties' optimal market potential and value
• To employ an appropriate mix of debt and equity and to utilise hedging strategies where appropriate

4. What are the Manager's fees payable by Sasseur REIT?

1. Base Fee: 10.0% per annum of Sasseur REIT's distributable income
2. Performance Fee: 25.0% of the difference in distribution per unit (DPU) in a financial year with the DPU in the preceding financial year (calculated before accounting for the performance fee, but after accounting for the Base Fee in each financial year) multiplied by the weighted average number of Sasseur REIT's units in issue for such financial year
3. Acquisition Fee: 0.75% of the acquisition price of any real estate purchased, whether directly or indirectly through one or more subsidiaries, by Sasseur REIT (pro-rated if applicable to the proportion of the REIT's interest in the real estate acquired) from related parties and 1.0% of the acquisition price for all other cases
4. Divestment Fee: 0.5% of the sale price of any real estate sold or divested, the underlying value of any real estate which is taken into account when computing the sale price for the equity interests in any vehicle, the sale price of any investment sold or divested by the REIT whether directly or indirectly through one or more subsidiaries, by the REIT
5. Development Management Fee: 3.0% of the total project costs incurred in development projects

5. What is the Entrusted Management Agreement (EMA) model?

Sasseur REIT has a unique EMA model which provides stability of EMA rental income via a fixed component and upside to be derived from higher sales via the variable component of the EMA rental income. To read more about the EMA model, click here.

Investing in Sasseur REIT

6. Will I receive an annual tax statement from Sasseur REIT on my unitholdings for me to complete my tax return at the end of each financial year?

No. Please refer to your share register or broker for these statements.

7. What is my current unitholdings?

To check your current holdings, please contact your broker.

8. What is the distribution currency of Sasseur REIT?

The distribution currency of Sasseur REIT is in Singapore dollar.

9. How and when will distributions be made available to Sasseur REIT's unitholders?

Sasseur REIT makes distribution to unitholders on a half-yearly basis. Sasseur REIT's distribution policy is to distribute at least 90% of its annual income available for distribution for each financial year. The actual level of distribution will be determined at the discretion of the Board of Directors of the REIT Manager.

With effect from second half of 2020, Sasseur REIT has adopted half-yearly reporting of financial statements.

10. Is the distributable income from Sasseur REIT subject to any tax?

Sasseur REIT's distributions may comprise all or a combination of the following types of distributions, to which different Singapore tax treatments apply:

Taxable income distribution
The Trustee and Manager will deduct income tax at the prevailing corporate tax rate, currently at 17%, except in certain circumstances. For distributions made to “qualifying unitholders”, the distribution is allowed to be made without deduction of tax.

A qualifying unitholder refers to:

1. An individual;
2. A company incorporated and tax resident in Singapore;
3. A Singapore branch of a company incorporated outside Singapore;
4. a body of persons incorporated or registered in Singapore, including a charity registered under the Charities Act 1994 or established by any written law, a town council, a statutory board, a co-operative society registered under the Co-operative Societies Act 1979 or a trade union registered under the Trade Unions Act 1940; e. An international organisation that is exempt from tax on such distributions by reason of an order made under the International Organisations (Immunities and Privileges) Act 1948;
5. A real estate investment trust exchange-traded fund which has itself been accorded the tax transparency treatment.

The above qualifying unitholders, unless they are exempt from tax because of their own circumstances, will be subject to Singapore income tax on taxable income distributions that they received at their own applicable tax rates.

In addition, distributions made to qualifying non-resident non-individual unitholders will be subject to a final withholding tax rate at a reduced rate of 10% (for distributions made on or before 31 December 2025).

Tax-exempt income distribution
Unitholders will be exempt from Singapore income tax on such distributions. No tax will be deducted at source or withheld on such distributions.

Capital distribution
Capital distribution is regarded as "return of capital" in the hands of the unitholders for Singapore tax purposes and is not subject to Singapore income tax. The amount of such distribution will be applied to reduce the cost base of Sasseur REIT units held by unitholders. For unitholders who are liable to Singapore income tax on gains arising from the disposal of Sasseur REIT units, they should use the reduced cost of units to calculate the amount of taxable trading gains when the units are subsequently disposed. If the amount of return of capital exceeds the cost of the Sasseur REIT units, the excess will be subject to tax as trading income of such unitholders. The proceeds from all subsequent sales of the remaining units will also be fully taxable.

Please go to Inland Revenue Authority of Singapore (IRAS) website (https://www.iras.gov.sg) for more information.

11. Can I invest in Sasseur REIT with funds from my Supplementary Retirement Fund (SRS) or Central Provident Fund (CPF)?

Yes, you can use your SRS and CPF funds to invest in Sasseur REIT. Kindly contact your respective SRS and CPF Approved Nominees for more information.

12. Can you update my new mailing address in your mailing records?

Please contact CDP at +65 6535 7511 to update your mailing address.

About Sasseur Group

13. Who is Sasseur Group?

The Sponsor, Sasseur Cayman Holding Limited, is part of Sasseur Group which is one of the premium outlet mall groups in China focusing on the development and operation of retail outlet malls in the country. As the leading privately-owned outlet mall operator in China, the Sponsor currently manages and operates 17 outlets. To read more about Sasseur Group, click here.

14. What is the Sponsor's stake in Sasseur REIT?

As at 30 June 2024, Sasseur Cayman Holding Limited, the Sponsor,owns approximately 57% of the units in Sasseur REIT. Please also refer to the 'Insider Trades' section for any latest updates on the Sponsor's stake.