Hefei Mengchenglu (Photo: BHG Retail REIT)Hefei Mengchenglu (Photo: BHG Retail REIT)

BHG Retail REIT has announced the establishment of a distribution reinvestment plan (DRP).

The plan was announced on the same day that the REIT reported a 33% fall in distributable income for its 1H 2022.

Amount to be distributed to unitholders for the period came in at SGD3.9 million, which was SGD1.9 million lower than in 1H 2021.

This was mainly due to higher finance costs, realised foreign exchange loss, and property management fees paid in cash, said the REIT.

Approximately SGD0.4 million in 1H 2022 of the amount available for distribution in 1H 2022 had been retained for the purpose of operating expenses and working capital requirements of the REIT.

Amid these developments, BHG Retail REIT announced the DRP, which would allow unitholders to receive their distributions wholly or partially in new units.

BHG Retail REIT’s manager will, at its discretion, determine the distribution period for which the DRP programme would apply to.

BHG Retail REIT was last done on the Singapore Exchange at SGD0.52, which presently implies a distribution yield of 2.92% according to data on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.