BHG RETAIL REIT (SGX:BMGU)
BHG Retail REIT - Poised For Renewed Growth
- BHG Retail REIT (SGX:BMGU)'s committed occupancy improved slightly to 93.0% from 92.9% as three portfolio assets recovered.
- Gross revenue and net property income increased 23.5% and 24.8% y-o-y respectively. This lifted BHG Retail REIT's 1H21 DPU by 33% to S$0.0112.
BHG Retail REIT's 1H21 Results - The Positives
Committed occupancy recovered slightly to 93.0% from 92.9% in 1H20.
- Occupancy recovered in three malls: Beijing Wanliu, Chengdu Konggang, and Hefei Changjiangxilu. Occupancy remained full at two malls: Xining Huayuan and Dalian Jinsanjiao.
Increase in gross revenue and net property income.
- The recovery in its gross revenue and property income was underpinned by healthy occupancy and an uptick in new leasing demand. No rental rebates were given in 1H21. Rents for new and renewed leases continued to recover.
Increase in DPU.
- With higher distributable income, BHG Retail REIT's DPU without waiver increased 33% to S$0.0112. The amount of distributions waived for its strategic investor units in 1H20 amounted to S$1.2mn, and the last distribution waiver was in 2H20. With the end of its sponsor’s distribution waiver, more units are entitled to distribution.
BHG Retail REIT's 1H21 Results - The Negative
Nil.
BHG Retail REIT - Outlook
- China’s GDP grew 12.7% y-o-y in 1H21. Retail sales of consumer goods recovered in tandem, by 23.0% y-o-y to RMB21.2tn. Urban residents’ disposable income per capita improved 12.6% y-o-y.
- Coupled with recovering committed occupancy and continued AEI, BHG Retail REIT appears poised for renewed growth.
- See
- BHG Retail REIT's gearing remained healthy at 34.9%, providing comfortable debt headroom to pursue M&A growth opportunities.
Vivian Ye
Phillip Securities Research
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https://www.stocksbnb.com/
2021-08-13
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