Sasseur REIT has reported a distribution per unit (DPU) of 1.999 Singapore cents for its 4Q 2018, 28.1% higher than what was forecast at its initial public offering (IPO).

As such, the REIT’s total DPU for FY2018 came in at 5.128 Singapore cents, comprising 3.541 cents declared for 2H 2018, and 1.587 cents paid for the period from 28 March 2018 to 30 June 2018.

The full-year DPU is 12.6% higher than what was forecast at the REIT’s IPO.

Correspondingly, Sasseur REIT has achieved a distributable income of SGD60.5 million for FY2018.

Its four properties generated combined sales of RMB3.4 billion for FY2018, exceeding the IPO forecast by 7.9%.

Entrusted manager agreement (EMA) rental income for 2018 came it at SGD89.9 million, 2.2% above IPO forecast, while for 4Q2018, the EMA rental income similarly beat forecast by 1.6%.

Vito Xu, Chairman of the REIT’s manager, has attributed the results to the partnership incentive system implemented by its sponsor.

The system aligns the interest of the operation management team with the performance of the business, including sales performance, customer satisfaction and cost management, said Xu.

In addition, China’s softening economic growth has generally resulted in slower sell-through rate of branded products in full price stores, and increases supply for outlet stores.

“In slower economic environment, customers also actively look for bargains and this has benefited Sasseur’s business”, he added.

From FY2019, distribution for Sasseur REIT will be switched from semi-annually, to quarterly.

Sasseur REIT was last done on the Singapore Exchange at SGD0.71.