BHG Retail Reit logs 94.2% committed occupancy rate in Q3, eyes acquisitions
The Reit’s manager is upbeat about economic conditions in China, even though its recovery “may take time”
[SINGAPORE] China-focused BHG Retail Real Estate Investment Trust (Reit) recorded a committed occupancy rate of 94.2 per cent for the third quarter ended September.
It also plans to explore acquisition opportunities for “quality, income-producing properties” from its sponsor’s pipeline and third-party vendors, its manager said in a Tuesday (Nov 11) business update.
BHG Retail Reit has six Chinese malls in its portfolio – two in Hefei and one each in Beijing, Chengdu, Xining and Dalian.
The Xining and Dalian properties, which are master-leased, had occupancy rates of 100 per cent. The remaining properties, which are multi-tenanted, had committed occupancy rates of between 83 per cent (Hefei Changjiangxilu) and 96.8 per cent (Beijing Wanliu).
The Reit has a 4.4-year weighted average lease expiry by net lettable area, as of Sep 30.
Looking ahead, the Reit’s manager is optimistic about economic conditions in China. “As reforms in employment, childcare and social safety nets gain traction, the recovery may take time, but its foundation appears more stable and confidence-led,” it said in the update.
BHG Retail Reit ended Tuesday flat at S$0.44.
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