BHG Retail REIT reported Thursday its first half net property income rose 24.8 percent on-year to S$20.6 million as China’s economy is recovering and retail sales of consumer goods are rising.
Gross revenue for the January-to-June period increased 23.5 percent on-year to S$34.3 million, mainly on rental rebates in the year-ago period, the REIT said in a filing to SGX.
The distribution per unit (DPU) came in at 1.12 Singapore cents, up 25.8 percent from 0.89 Singapore cent in the year-ago period, the REIT said.
Chan Iz-Lynn, CEO of the REIT’s manager, said the results were “creditable.”
“Through dedicated efforts to enhance our assets, rejuvenate brands, and reinvent offerings, we continued to observe healthy demand for our leasing spaces. Looking forward, we will continue to elevate the appeal and vibrancy of our community-focused malls; leverage on high population density heartlands; and capitalise on the longer-term residents’ income growth and consumption upgrade,” she said in the statement.
“In addition to growing organically, we will continue to seek potential DPU yield-accretive acquisition opportunities, and give fresh impetus to the REIT’s next phase of growth,” she said.
The REIT said the committed occupancy rate remained strong at 93.0 percent as of end-June, up from 92.9 percent in the year-ago period, with rents for new and renewed leases in the first half seeing progressive recovery.
BHG Retail REIT is a pure-play China retail REIT, with a portfolio of six retail properties with an appraised value of around 4.66 billion yuan.