BHG RETAIL REIT (SGX:BMGU)
BHG Retail REIT - Stable Growth With Resilient Portfolio
- Committed occupancy improved to 97.0% from 93.5% in 2H20 as four portfolio assets saw recovery.
- BHG Retail REIT (SGX:BMGU)'s 2H21 gross revenue and net property income increased by 10.8% and 6.6% y-o-y respectively. 2H21 DPU was up by 4% to 1.05 cents.
The Positives
Committed occupancy recovered to 97.0% from 93.5% in 2H20.
- Occupancy recovered in four malls: Beijing Wanliu, Chengdu Konggang, Hefei Mengchenglu and Hefei Changjiangxilu. Occupancy remained full at the remaining two malls: Xining Huayuan and Dalian Jinsanjiao.
Increase in gross revenue and net property income.
- The recovery in BHG Retail REIT's gross revenue and property income was underpinned by healthy occupancy. The main contributor to the increase was Beijing Wanliu mall, with gross revenue increasing 19% to S$20mil . No rental rebates were given in 2H21. Rents for new and renewed leases continued to recover.
The Negative
Higher property operating expenses.
- Property operating expenses increased 17.3% y-o-y, due to the gradual resumption of malls’ normal operations and absence of COVID-19 subsidies from the government.
Outlook
- China’s GDP grew 8.1% in 2021. Retail sales of consumer goods recovered in tandem, by 12.5% y-o-y to RMB44.1tn. Urban residents’ disposable income per capita improved 12.6% y-o-y.
- BHG Retail REIT’s portfolio has again proved its resilience, with continued recovery in portfolio occupancy and higher gross revenue, despite the COVID-19 Omicron wave in 2H21.
- BHG Retail REIT's gearing remained healthy at 34.1%, providing comfortable debt headroom to pursue M&A growth opportunities.
- See
Vivian Ye
Phillip Securities Research
|
https://www.stocksbnb.com/
2022-03-02
SGX Stock
Analyst Report
99998.000
SAME
99998.000
