Sasseur REIT's unique Entrusted Management Agreement (EMA) model comprises a fixed component to provide a stable growing income and a variable component to enable unitholders to participate in the upside in sales performances of the REIT's outlets. Under this model, every sale from the tenants is captured in the REIT's bank account from which a certain percentage is drawn out as the variable rent component.
Coupled with the built-in 3% annual step-up of the fixed component under the EMA, this ensures Sasseur REIT can achieve fair, transparent and stable growth whilst aligning the REIT Manager's interests with that of the REIT's unitholders.
The Entrusted Manager (who is Sasseur REIT's Sponsor) bears all the operating expenses related to the running of all the outlets under the EMA model.
For numerical examples of the EMA model, please click on EMA numerical examples for the three scenarios.