Question on Dasin Retail Trust with regards to withdrawal of income support

[Hock Meng]

Hi!

Good afternoon. This question is posed to Dehong on the initiation coverage for Dasin Retail Trust.

May I check with Dehong on the potential impacts on DPU as a result of the withdrawal of income support.

I noted in the 11:15 am teleconference call that the potential impact to FY 2017 DPU is 3.9 cents. May I know if this 3.9 cents is the amount that will be deducted from the final DPU, or is this the amount to be distributed to the unit holders?

Thank you Dehong.

 

[Research Department]

Hi Hock Meng,

Thank you for engaging us through our new Stocksbnb.com website. 3.9c FY17 DPU is the DPU attributable to unitholders if there were no income support. FY18e (without income support is 5.0c). We expect the 16% CAGR organic growth from the malls (especially from the new Shiqi mall and Ocean Metro) to partially offset the negative impact of the gradual withdrawal of income support. Good to note also that even for FY21 where the income support drop off will be the steepest, we are expecting 7.68c DPU which translates to 9% distribution yield based on current price. (or 6.54c without income support)

[Hock Meng]

Thank you for your replies. I appreciate it. My apologies for the late replies.

Hock Meng

[Author]

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