SINGAPORE (Feb 23): The manager of BHG Retail REIT has declared a 4Q distribution per unit (DPU) of 1.32 cents, up 0.8% from its DPU of 1.31 cents in 4Q16.
This brings the REIT’s DPU for the full year up 2.8% to 5.47 cents from 5.32 cents in FY16, the REIT’s inaugural year.
Gross revenue rose 4.8% in 4Q to $16.7 million from $15.8 illion previously on higher rental reversion and increase in occupancy recorded in BHG REIT’s three multi-tenanted malls in China.
This was however partially offset by the adoption of nation-wide VAT reform in China, which came into effect from May 2016 when 5% VAT was netted off against gross revenue, whereas the full effect was recorded for the full year in 2017.
Over the quarter, property operating expenses grew 1.4% to $5.6 million from $5.5 million in 4Q16.
Net property income (NPI) grew 8.1% to 11.1 million 4Q17 from $10.3 million previously in spite of higher property-related tax expenses in Beijing Wanliu Mall.
Against the backdrop of the stabilising Chinese economy, recovering retail sales and increasing domestic consumption, BHG REIT’s manager says its current portfolio of community-focused retail properties in prudently selected locales with high population density is expected to stay robust.
This is anchored by increasing domestic consumption, rising residents’ income, and continuing urbanisation, adds the manager.
Units in BHG REIT closed flat at 75 cents on Friday.
