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Its portfolio of community malls registered a robust operational performance in Q1, with portfolio occupancy rate at 98.5 percent.
BHG Retail REIT posted a 2.6 percent hike in gross revenue in the first quarter of 2019 to $17.9 million, from $17.4 million over the same period last year.
Net property income also increased 1.6 percent to $11.8 million in Q1 2019, from $11.6 million in Q1 2018.
“Based on the closing price as at 31 March 2019, and aggregated distribution per unit of 1.10 Singapore cents for Q1 2019, BHG Retail REIT’s annualised distribution yield of 6.5 percent continues to represent an attractive yield-play investment,” it said in an SGX filing.
Chan Iz-Lynn, CEO of the REIT’s manager, noted that BHG Retail REIT’s portfolio of community malls registered a robust operational performance in Q1, with portfolio occupancy rate at 98.5 percent.
“Our multi-tenanted malls continued to observe healthy leasing demands as well as strong rental uplift from existing and new tenants. Notwithstanding this, the manager is not resting on its laurels,” she said.
“We will continue to create organic value through asset enhancement initiatives, and actively pursue potential acquisition growth opportunities, so as to deliver long-term attractive yield to our unitholders.”
Looking ahead, BHG Retail REIT expects its portfolio of community malls within high population density to remain resilient, on the back of the Chinese government’s policies to sustain domestic consumption and prioritise economic stability.
It revealed that the fundamentals of such malls remain underpinned by upward trajectory of the residents’ consumption upgrade, rural-urban migration as well as income and spending.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg.
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