However, if the third party owner of the real estate wishes to sell these assets (also under a ROFR agreement) to Sasseur Cayman, he can then sell them as ROFR real estate to Sasseur REIT. To better understand REIT`s portfolio, we need to appreciate its unique way of managing the four shopping centres it owns. The REIT effectively entrusts the management of the shopping centre to a third party, the manager entrusted. The way the entrusted manager receives incentives, it is clear that it is in the interest of the entrusted manager to try to increase gross revenues for the REIT, which is ultimately also beneficial to REIT shareholders. First, the entrusted manager showed a good track record in the growth of portfolio tenant sales. In addition, the resulting rents and thus the unit allocation have exceeded expectations since the beginning of the REIT each quarter. I am more inclined to trust managers who do not promise enough and who provide too much. Sasseur REIT saw its management agreement entrusted (EMA) rental income fall 17.1% to $25.46 million (RMB127.2 million) in the first quarter by $30.73 million (RMB153.5 million in 2019), as four of its outlet malls in China were affected by disruptions and temporary closures. Reit`s rental income under its entrusted management agreements (EMAs) rose 1.4 percent in the quarter to $30.3 million from $29.9 million the previous year, according to results released Friday by Reit. Starting in fiscal year 2020, the minimum rental requirement will no longer apply, as the Sasseur Group`s business model and business model are sustainable, as shown in the REIT earnings release for fiscal year 2019. In essence, the entrusted administrator is entitled to the remaining gross proceeds after paying THE SAsseur REIT what he owes. However, this amount is limited to 30% of gross sales.
If it stays after the basic tax and the EMA payment to Sasseur REIT is made, the entrusted manager is entitled to 60% of the balance in the form of a bonus. In summary, the REITs in which I invest, (1) a good existing portfolio, (2) a capable and honest management, (3) a secure capital structure, (4) a fair and responsible sponsor and (5) a decent valuation. The managing director is responsible for maximizing the rental income of the assets. She collects the rent and pays Sasseur REIT contract rental income entrusted by the manager. Reit`s rental income under its entrusted management agreements (AEMs) was $30.3 million, one per cent less than us$30.6 million the previous year.