Strong Maiden Earnings, Maintain BUY

• Sasseur REIT delivered strong maiden earnings with DPU of SGD1.587cts for its 28 Mar to 30 Jun 2018 period, 4.6% ahead of its IPO projection. 
• Sales growth of 16-142% at its four outlet malls outpaced our 3-40% forecasts with momentum expected into the seasonally stronger 2H. Despite strong results, our forecasts and DDM-based SGD0.90 Target Price (WACC: 10.7%, LTG: 3.0%) are unchanged as we await further confirmation due to its brief reporting history. 
• With downside protection from risk-absorbing EMA structures, the risk to DPU is to the upside given stronger-than- expected sales performance thus far.

Source: Maybank Kim Eng Research - 07 Aug 2018