A Review of Sasseur Reit CRPU(SGX) Post-IPO after 6 Months

Sasseur Reit was listed on the Singapore Exchange on the 28th March 2018 @ 0.80 SGD promising a 7.5% payout for year 2018. 

Banking on the raising influence of China's Middle Class for branded products. Sasseur Reit has the following Outlet Mails in Tier 2 Cities in the Portfolio:- 

4 Outlet Malls:

• SASSEUR (Chongqing)
• SASSEUR (BISHAN)
•  SASSEUR (HEFEI)
• SASSEUR (KUNMING)

2 Right of First Refusal (ROFR) Properties:

• SASSEUR  (XI’AN)   
• SASSEUR (GUIYANG)

3 Pipeline Properties (Third Party Properties Under Management):

• SASSEUR (HANGZHOU)
• SASSEUR (NANJING)
• SASSEUR (ZHONGDONG CHANGCHUN)

Since then, Maybank Kim Eng (7th June) and Citi Research (20th June) has initiated coverage on Sasseur Reit.

                              Target Price
MBKE:                     0.9
Citi Research:          0.92

The coverage can be found here:
MBKE
Citi Research

With a 52 week low of 0.67and closing at 0.72 today translates to about ~10% lost since IPO. I have initiated a position with an average price below (0.7) 

At current price range, it translates to about 8-9% payout for 2018 providing cushion to any further downside. With the 1st distribution by September 2018.

However, with the current macro environment (US / China Trade Wars and Weakening of the YUAN). 

I wouldn't be in a hurry to be adding any further positions. 

I would also be keeping a lookout on the acquisition prices of the 2 ROFR properties.