BHG Retail REIT's Beijing Wanliu Mall (Photo: BHG Retail REIT)BHG Retail REIT's Beijing Wanliu Mall (Photo: BHG Retail REIT)

Singapore-listed retail REIT, BHG Retail REIT, announced on 12 May that it has achieved a distribution per unit (DPU) of 1.5 Singapore cents for the period spanning its listing date, (11 December 2015) to 31 March 2016, beating forecast made at IPO of 1.49 cents by 0.7%.

Amount available for distribution for the period was SGD5.178 million, beating forecast by 0.5%. Correspondingly gross revenue and net property income for the period came it at SGD19.69 million and SGD12.05 million, beating forecast by 0.6% and 0.4% respectively.

“Our portfolio of five community-focused retail properties, strategically located in vicinities with strong surrounding catchment, has maintained a healthy level of committed occupancy, and achieved positive rental reversion subsequent to listing”, said Chan Iz-Lynn, CEO of the REIT’s manager, in a statement on the results.

The REIT’s portfolio occupancy as at 31 March 2016 was at 98.3% with a weighted average lease expiry (WALE) of 9.3 years by net lettable area and 5.8 years by gross rental income.

BHG Retail REIT’s gearing at the end of the period was 29.5% with a weighted average term to maturity of 3.1 years and no financing requirements until December 2017.

Chan pointed to an increase in urban residents in China and a 6.5% year-on-year national per capita disposable income growth in the country as factors that will bode well for the REIT in the years ahead.

“Against this backdrop, we believe BHG Retail REIT’s portfolio of lifestyle community malls with healthy visitorship and tenant sales are well positioned to benefit from China’s rising middle-income group and increasing emphasis on domestic demand”, she added.

Units of BHG Retail REIT finished flat from its previous trading day on the Singapore Exchange at SGD0.79.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.