BHG Retail REIT has reported a distribution per unit (DPU) of 0.43 cents for the FY2023 ended Dec 31, 2023, 62% lower y-o-y from FY2022’s DPU of 1.17 cents.
Similarly, the REIT’s DPU of 0.08 cents for the 2HFY2023 was 80.5% lower y-o-y than 2HFY2022’s DPU of 0.41 cents.
Meanwhile, gross revenue in 2HFY2023 was $0.1 million or 0.2% higher y-o-y than 2HFY2022 and FY2023’s gross revenue of $62.0 million was $4.5 million or 6.7% y-o-y lower than FY2022’s $66.4 million.
The REIT’s net property income (NPI) of $17.1 million in 2HFY2023 was $0.4 million or 2.3% higher y-o-y than 2HFY2022’s $16.7 million, while FY2023’s NPI of $35.0 million was $2.8 million or 7.3% lower y-o-y than FY2022’s $37.7 million.
Overall, both the REIT’s gross revenue and property operating expenses declined mainly due to the weakening of Renminbi (RMB) against the Singdollar and loss of income during its assets enhancement initiative (AEI) period, with a foreign exchange (forex) loss of $5.5 million in FY2023.
Furthermore, FY2023’s cash and cash equivalent of $3.6 million is 69% higher y-o-y than FY2022’s $2.1 million.
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The portfolio occupancy rate was 95.6% as at Dec 31, 2023, slightly higher than 95.2% as at Dec 31, 2022.
“In tandem with the improving consumer sentiments, the REIT continued to engage its shoppers and communities through marketing activities such as the Halloween and mural painting events at Beijing Wanliu, the public square basketball competition and piano concert events at Hefei Changjiangxilu, among others, in 2HFY2023,” says Chan Iz-Lynn, CEO of BHG Retail REIT BMGU .
She adds: “Our quality portfolio of retail malls in high population density neighbourhoods are well-positioned to capitalise on China’s economic recovery. Looking forward, the Manager will remain focused on executing its current strategy of refreshing and optimising its malls’ tenant mix, remaining prudent in its capital management, and pursuing yield-accretive acquisition opportunities.”
Units in BHG Retail REIT closed 0.5 cents lower or 1.02% down at 48 cents on Feb 23.
