Financial Statements and Related Announcement::Second Quarter and/ or Half Yearly Results

SASSEUR REAL ESTATE INVESTMENT TRUST

Unaudited Financial Statements and Distribution Announcement

For the Second Quarter and Half Year Ended 30 June 2021

TABLE OF CONTENTS

	Item No.				Description		Page No.
	-				Introduction			2
	-				Summary of Sasseur REIT Group Results			3
	1(a)		Consolidated Statement of Total Return and Distribution Statement	4	- 6
	1(b)(i)			Statements of Financial Position	7	- 8
	1(b)(ii)			Aggregate Amount of Borrowings and Debt Securities			9
	1(c)			Consolidated Statement of Cash Flows	10	- 11
	1(d)(i)			Statements of Changes in Unitholders' Funds			11
	1(d)(ii)			Details of Any Changes in Units			12
	1(d)(iii)		Total Number of Issued Units			12
	1(d)(iv)		Sales, Transfers, Cancellation and/or Use of Treasury Units			12
	2 & 3				Audit Statement			12
	4 & 5				Changes in Accounting Policies			12
	6				Consolidated Earnings Per Unit ("EPU") and Distribution Per Unit			13
				("DPU")
	7			Net Asset Value ("NAV") and Net Tangible Asset ("NTA") Per Unit			13
	8			Review of Performance	13	- 14
	9			Variance from Forecast or Prospect Statement			14
	10			Outlook and Prospects	14	- 15
	11 & 12				Distribution			16
	13			General Mandate relating to Interested Person Transactions			16
	14			Confirmation Pursuant to Rule 720(1) of the Listing Manual			16
	15			Confirmation Pursuant to Rule 705(5) of the Listing Manual			17

Page 1 of 17

SASSEUR REAL ESTATE INVESTMENT TRUST

Unaudited Financial Statements and Distribution Announcement

For the Second Quarter and Half Year Ended 30 June 2021

___________________________________________________________________________

Introduction

Sasseur Real Estate Investment Trust (the "Sasseur REIT") is a Singapore real estate investment trust constituted as a private trust ("Sasseur Trust") by a trust deed dated 30 October 2017 which was supplemented by a first supplemental deed dated 19 March 2018, entered into by Sasseur Asset Management Pte. Ltd. as Manager of Sasseur REIT (the "Manager") and DBS Trustee Limited as Trustee of Sasseur REIT (the "Trustee"). Sasseur Real Estate Investment Trust and its subsidiaries are collectively known as the "REIT Group".

Sasseur REIT was listed on the Main Board of the Singapore Exchange Securities Trading Limited ("SGX-ST") on 28 March 2018 (the "Listing Date"). Sasseur REIT's investment strategy is investing principally, directly or indirectly, in a diversified portfolio of income-producing real estate, which primarily comprises retail outlet malls, as well as real estate-related assets in relation to the foregoing, with an initial focus on Asia.

Sasseur REIT's initial portfolio comprises the following four retail outlet malls (the "Properties") strategically located in cities of economic potential in the People's Republic of China ("PRC"):

• Chongqing Liangjiang Outlets (formerly known as Chongqing Outlets)
  Chongqing Liangjiang Outlets is a retail outlet mall that targets middle and upper-class consumers with higher disposable incomes. Chongqing Liangjiang Outlets was designed and built to reflect an Italian architectural style, distinguishing itself through an experiential shopping concept. Chongqing Liangjiang Outlets houses a cinema, children recreational facilities as well as an array of restaurants. The Chongqing Liangjiang Outlets is located in the northeast region of the city and is approximately 10 km away from the Chongqing Jiangbei International Airport.
• Chongqing Bishan Outlets (formerly known as Bishan Outlets)
  Chongqing Bishan Outlets was designed to be a one-stop shopping destination in the Bishan and West Chongqing areas, combining retail shopping with entertainment, food, education and leisure. Chongqing Bishan Outlets features (i) a "Super Children's Centre" (which features retail stores offering a selection of infant and children's clothing labels, an early childhood education centre, an enrichment centre, a children's playground, a children's photography centre and a children's theatre) and (ii) a "Super Sports Hall" (which houses the outlet stores of sports brands such as Nike, Adidas and PUMA). In addition to the foregoing, there are several pubs and bars found in Chongqing Bishan Outlets and Chongqing Bishan Outlets is poised to be a trendy meeting point for the young. Chongqing Bishan Outlets is located in the west of Chongqing. As the closest district to the downtown area of Chongqing, Chongqing Bishan Outlets can be accessed within a one-hour drive (approximately 37 km) from the downtown area of Chongqing.
• Hefei Outlets
  Hefei Outlets caters to middle class consumers by offering a wide range of entertainment choices as well as luxury brand stores. Hefei Outlets also features one of the largest cinemas in east China and the first five-star cinema in Hefei under the UME cinema chain, with 17 cinemas equipped with state-of-the-art audio and visual systems and more than 2,500 seats. Hefei Outlets is located in the High-Tech Industrial Development Zone, which is one of the PRC's national high-tech industrial development zones.
• Kunming Outlets
  Kunming Outlets offers a wide array of retail options including outlet mall shopping, healthcare services, entertainment and cultural facilities, thereby providing its customers with a comprehensive lifestyle and entertainment experience intended to promote retail spending and enhance customer loyalty. Kunming Outlets is targeted at middle class consumers, catering to their growing preference for luxury brands such as Burberry. Kunming Outlets also carries popular domestic brands to cater to a wide customer base. Kunming Outlets is located in Taiping New City, a new development platform for urban expansion by the government of Anning City.

Sasseur REIT is presenting its financial results for the second quarter ended 30 June 2021 ("2Q 2021") and for the financial period from 1 January 2021 to 30 June 2021 ("1H 2021").

Distribution Policy

Sasseur REIT makes distribution to the Unitholders on a quarterly basis. Sasseur REIT's distribution policy is to distribute at least 90.0% of its annual distributable income for each financial year. The actual level of distribution will be determined at the discretion of the Board of Directors of the Manager.

Page 2 of 17

SASSEUR REAL ESTATE INVESTMENT TRUST

Unaudited Financial Statements and Distribution Announcement

For the Second Quarter and Half Year Ended 30 June 2021

___________________________________________________________________________

Summary of Sasseur REIT Group Results

	2Q 2021 (1)	2Q 2020 (1)	Change	1H 2021 (1)	1H 2020 (1)	Change
	S$'000	S$'000	%	S$'000	S$'000	%
EMA rental income	32,025	30,328	5.6	66,123	57,952	14.1
EMA rental income (exclude	30,201	27,969	8.0	62,491	53,233	17.4
straight-line adjustments)
Income available for distribution	21,732	18,162	19.7	45,373	34,156	32.8
to Unitholders
Distribution per unit ("DPU")	1.614	1.512	6.7	3.373	2.846	18.5
(cents) (2)(3)
Distribution yield	6.9%	8.2%	(15.9)	7.2%	7.7%	(6.5)
(%) (4)
Notes:

1. The results of the REIT Group's foreign subsidiaries were translated using the average SGD:RMB rates as follows:

2Q 2021	2Q 2020	Change	1H 2021	1H 2020	Change
		%			%
4.8302	5.0381	(4.1)	4.8516	5.0360	(3.7)

1. The DPU of 1.614 Singapore cents is equivalent to 7.796 Renminbi cents for 2Q 2021 and 3.373 Singapore cents is equivalent to 16.364 Renminbi cents for 1H 2021.
2. S$2.2 million and S$4.5 million of the income available for distribution have been retained in anticipation of asset enhancement initiatives and working capital requirements for 2Q 2021 and 1H 2021 respectively.
3. Based on annualised DPU and the market closing price per Unit of S$0.945 and S$0.740 as at 30 June 2021 and 30 June 2020 respectively.

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SASSEUR REAL ESTATE INVESTMENT TRUST

Unaudited Financial Statements and Distribution Announcement

For the Second Quarter and Half Year Ended 30 June 2021

___________________________________________________________________________

1(a) Consolidated Statement of Total Return and Distribution Statement

Consolidated Statement of Total Return

EMA rental income

Manager's management fees (2) Trust expenses

Finance income Finance costs Exchange differences Change in fair value of financial

derivatives

Total return before fair value adjustments to investment properties and tax

Fair value adjustments to investment properties Total return before tax

Tax expense

Total return after tax

Total return after tax attributable to: Unitholders

Distribution Statement

Total return attributable to

Unitholders

Distribution adjustments

Income available for distribution to Unitholders

Less: Amount retained (3) Amount to be distributed to Unitholders

n.m. - Not meaningful

Footnotes:

			REIT Group
Note	2Q 2021 (1)	2Q 2020 (1)	Change	1H 2021 (1)	1H 2020 (1)	Change
	S$'000	S$'000	%	S$'000	S$'000	%
1	32,025	30,328	5.6	66,123	57,952	14.1
2	(2,173)	(1,817)	(19.6)	(4,537)	(3,416)	(32.8)
3	(581)	(613)	5.2	(1,123)	(1,130)	0.6
	48	5	n.m.	52	58	(10.3)
4	(5,964)	(6,631)	10.1	(11,938)	(13,558)	11.9
5	2,056	(538)	n.m.	3,217	173	n.m.
6	(119)	(27)	n.m.	212	(59)	n.m.
	25,292	20,707	22.1	52,006	40,020	30.0
7	(1,824)	(2,359)	22.7	(3,632)	(4,719)	23.0
	23,468	18,348	27.9	48,374	35,301	37.0
8	(3,813)	(3,921)	2.8	(8,315)	(6,891)	(20.7)
	19,655	14,427	36.2	40,059	28,410	41.0
	19,655	14,427	36.2	40,059	28,410	41.0
	19,655	14,427	36.2	40,059	28,410	41.0
9	2,077	3,735	(44.4)	5,314	5,746	(7.5)
	21,732	18,162	19.7	45,373	34,156	32.8
	(2,173)	-	n.m.	(4,537)	-	n.m.
	19,559	18,162	7.7	40,836	34,156	19.6

1. The results of the REIT Group's foreign subsidiaries were translated using the average SGD:RMB rates as follows:

2Q 2021	2Q 2020	Change	1H 2021	1H 2020	Change
		%			%
4.8302	5.0381	(4.1)	4.8516	5.0360	(3.7)

1. The Manager has elected to receive 100% of its management fees in the form of units for the period from 1 January 2020 to 30 June 2021.
2. S$2.2 million and S$4.5 million of the income available for distribution have been retained in anticipation of asset enhancement initiatives and working capital requirements for 2Q 2021 and 1H 2021 respectively.

Page 4 of 17

SASSEUR REAL ESTATE INVESTMENT TRUST

Unaudited Financial Statements and Distribution Announcement

For the Second Quarter and Half Year Ended 30 June 2021

___________________________________________________________________________

Notes:

• EMA rental income is accounted for on a straight-line basis over the lease term. Excluding straight-line adjustments, EMA rental income is as follows:

EMA rental income Straight-line adjustments (Note 7)

EMA rental income (exclude straight-line adjustments)

2Q 2021	2Q 2020	Change	1H 2021	1H 2020	Change
S$'000	S$'000	%	S$'000	S$'000	%
32,025	30,328	5.6	66,123	57,952	14.1
(1,824)	(2,359)	(22.7)	(3,632)	(4,719)	(23.0)
30,201	27,969	8.0	62,491	53,233	17.4

Straight-line adjustments relate to straight-lining of the 3% annual escalation of the fixed component of EMA rental income over the EMA tenure in accordance with the principles of FRS 116 Leases.

• This consists of manager's base fees calculated at 10.0% per annum of the income available for distribution to Unitholders.

• Trust expenses consist of recurring operating expenses such as trustee's fees, audit fees, tax advisory fees, valuation fees, legal and other professional fees, annual listing fees, investor communication costs and other miscellaneous expenses.

• Finance costs comprise the following:

	2Q 2021	2Q 2020	Change	1H 2021	1H 2020	Change
	S$'000	S$'000	%	S$'000	S$'000	%
Interest expenses on borrowings	(4,307)	(5,260)	18.1	(8,660)	(10,829)	20.0
Other borrowing costs	(71)	(61)	(16.4)	(127)	(124)	(2.4)
Borrowing-related transaction
costs:
- Amortisation	(1,586)	(1,310)	(21.1)	(3,151)	(2,605)	(21.0)
	(5,964)	(6,631)	10.1	(11,938)	(13,558)	11.9

• This relates to the foreign exchange differences on translation of foreign currency denominated transactions and monetary items for the Group.

• This relates to net change in fair value of interest rate swap and cross currency swap contracts which were entered into to hedge interest rate and foreign currency risks. This has no impact on the income available for distribution to Unitholders.

• Fair value adjustments to investment properties relate to straight-line adjustments (see Note 1) and have no impact on the income available for distribution to Unitholders.

• Tax expense comprises income tax and deferred tax largely relating to the REIT Group's foreign subsidiaries.

	2Q 2021	2Q 2020	Change	1H 2021	1H 2020	Change
	S$'000	S$'000	%	S$'000	S$'000	%
Income tax	(3,262)	(3,236)	(0.8)	(7,004)	(6,038)	(16.0)
Deferred tax	(551)	(685)	19.6	(1,311)	(853)	(53.7)
	(3,813)	(3,921)	2.8	(8,315)	(6,891)	(20.7)

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