BHG Retail Reit's Q4 DPU slips 14.7% to 0.93 S cent

BHG Retail Reit's fourth-quarter distribution per unit (DPU) fell 14.7 per cent to 0.93 Singapore cents, from 1.09 cents a year ago. 

The lower DPU was due to an increase in the number of units entitled to distribution, as well as the payment of management fees in units in lieu of cash, the manager of the pure-play China real estate investment trust said on Tuesday night.

Gross revenue rose 18.7 per cent to S$20.4 million for the quarter ended Dec 31, from S$17.2 million a year ago, thanks to strong rental reversion, higher occupancy rates and an enlarged portfolio as a result of the newly acquired Hefei Changjiangxilu mall.

Net property income (NPI) grew 11.6 per cent to S$12.4 million for Q4, from S$11.1 million. 

Amount to be distributed to unitholders slipped 5.9 per cent year on year to S$3.9 million for the quarter, from S$4.2 million.

BHG Retail Reit's manager declared a distribution of 1.79 Singapore cents per unit for H2 2019. This will be paid out on March 30 this year, after books closure on March 11 this year. 

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Meanwhile, for the full year ended Dec 31, 2019, DPU was lower at 3.87 Singapore cents, versus 5.16 cents a year ago. Amount to be distributed to unitholders fell 15 per cent to S$16.8 million. 

Full-year gross revenue was 13.5 per cent higher at S$79.1 million, while NPI rose 10.6 per cent to S$50.5 million.

"Notwithstanding the near-term headwinds generated by the developing Covid-19 situation, BHG Retail Reit's long-term strategy remains well-positioned to benefit from China's rising residents' income and consumption upgrade," the manager said.

As at 10.29am on Wednesday, BHG Retail Reit units were trading at 64 Singapore cents, down 0.5 cent or 0.8 per cent.