Sasseur REIT`s balance sheet is 28.5% and has an interest rate coverage rate of 4.7%. The recent easing of the gearing limit for SGX-listed REITs, which fell from 45% to 50%, has given SASSEUR REIT more leeway for debt and flexibility in capital management, the company said. From the GJ 2020, the minimum rent requirement will no longer apply, given that the sasseur group`s business model and management model are sustainable, as well as the publication of REIT`s results for the 2019 financial year. Sasseur REIT saw its lease income from the Entrusted Management Agreement (EMA) plummet 17.1% year-on-year to $25.46 million (RMB 127.2 million) in Q1 of $30.73 million (RMB 153.5 million) in 2019, with four of its shopping malls affected by operational disruptions and temporary closures in China. To better understand the REIT`s portfolio, we need to appreciate how it uniquely manages the four shopping centres it owns. The REIT effectively outsources the management of the shopping centre to a third party designated as the mandated manager. From the way the manager is incentivized, it becomes clear that it is in the interest of the manager in charge to try to increase the gross turnover for the REIT, which is ultimately also beneficial for REIT unitholders. For the most part, the manager in charge is entitled to the rest of the gross turnover after paying what he owes to Sasseur REIT. However, this amount is limited to 30% of gross turnover. If you stay after the basic tax and the resulting EMA rent is paid to Sasseur REIT, the manager in charge will then be entitled to 60% of the balance as a performance bonus.
Reit`s rental income under its management contracts (EMAs) was $30.3 million, down 1 percent from $30.6 million the previous year. Adjusted for a 3 per cent linear increase in the fixed component of rental income of the EMA, it would amount to $32.6 million. However, if the third party owner of the real estate wishes to sell these assets (which are also under the sign of a ROFR agreement) to Sasseur Cayman, he can sell them as ROFR real estate to Sasseur REIT. First, the manager in charge showed a good track record regarding the evolution of rental sales of the portfolio. In addition, the resulting rent, and thus the unit allocation, has exceeded expectations since the listing of the RSP each quarter. I tend to trust managers who wouldn`t sew enough and deliver too much. The manager in charge is responsible for maximizing the rental income of the assets. It collects the rent and pays a rental contract entrusted to Sasseur REIT. Reit`s rental income under its Entrusted Management Agreements (EMAs) increased 1.4 percent in the quarter to $30.3 million from $29.9 million the previous year, according to Results Released Friday from Horseback Riding. . .