BHG Retail REIT : Full Annual Report (14.33 MB)

REFRESH

REJUVENATE RE-ENERGISE

B H G R E TA I L R E I T 

A n n u a l R e p o r t 2 0 2 3

Certain artworks in this Annual Report are in collaboration with Muscular Dystrophy Association (Singapore)

BHG Retail REIT

has grown steadily on the back of steady investment focus: good quality income-generating retail assets in China's high-growth neighbourhoods.

Poised to capitalise on the steady rise of a consumer segment that clamours for good retail spaces and compelling retail experiences, we aspire to grow with our markets - creating desirable retail destinations, building strong tenant relationships and bringing lasting benefits to our communities.

Our Vision

A successful and sustainable real estate investment trust with a portfolio of quality, income-producing retail properties that are well-managed.

Our Mission

To deliver regular and stable distributions to our Unitholders, creating value by enhancing our properties through asset management strategies and expanding our portfolio through yield-accretive acquisitions, while working to contribute to the communities we operate in.

Contents

OVERVIEW

Corporate Profile	01
Property Portfolio	02
Key Highlights	03
Year At A Glance	04
Letter to Unitholders	08
Trust Structure	15
Organisation Structure	16
Board of Directors	17
Management Team	20
Enterprise Risk Management	23
Corporate Governance	25

PERFORMANCE REVIEW

Operations Review	52
Financial Review	58

BUSINESS HIGHLIGHTS

Portfolio Overview	62
Property Highlights	66
Investor Relations	78
Sustainability Report	81
Financial Statements	114

ADDITIONAL INFORMATION

Interested Person Transactions	190
Statistics of Unitholdings	191
Notice of Annual General Meeting	193
Proxy Form
Corporate Directory

Singapore's First Pure-Play China Retail REIT Sponsored by a China-Based Group

CORPORATE PROFILE

Listed on SGX-ST, BHG Retail REIT has a diversified portfolio of six retail properties strategically located in major cities in China, namely Beijing, Chengdu, Hefei, Xining and Dalian.

As of 31 December 2023, BHG Retail REIT's portfolio comprises:

1. 60.0% interest in Beijing Wanliu (北京华联万 柳购物中心) in Beijing 北京华联成都空港购物
2. Chengdu Konggang (
   中心) in Chengdu, Sichuan Province
3. Hefei Mengchenglu (北京华联合肥蒙城路购 物中心) in Hefei, Anhui Province
4. Hefei Changjiangxilu (北京华联合肥长江西路 购物中心) in Hefei, Anhui Province
5. Xining Huayuan (北京华联西宁花园店) in Xining, Qinghai Province
6. Dalian Jinsanjiao (北京华联大连金三角店) in Dalian, Liaoning Province

BHG Retail REIT's asset portfolio consists of community focused retail properties situated in high population density areas frequented by growing middle class professionals and families. Designed as lifestyle destinations, each multi-tenanted mall features a compelling mix of shopping, dining, education and entertainment establishments. The highly popular Beijing Hualian Life Supermarket (北京华联生活超市) serves as an anchor tenant and master lessee, catering to the daily needs of residents of surrounding neighbourhoods.

BHG Retail REIT is managed by BHG Retail Trust Management Pte. Ltd. (the "Manager"), an indirect wholly-owned subsidiary of Beijing Hualian Department Store Co., Ltd. (北京华联商厦股份有 限公司) (the "Sponsor"). The Sponsor and Beijing Hualian Life Supermarket Co., Ltd. are part of Beijing Hualian Group Investment Holding Co., Ltd. (北京 华联集团投资控股有限公司), one of China's largest retail enterprises with more than 20 years of retail operating experience.

1

Property

Portfolio

6

STRATEGICALLY

LOCATED

PROPERTIES

MULTI-TENANTED

BEIJING

WANLIU

HEFEI

MENGCHENGLU

	Dalian
	Dalian
	Jinsanjiao
	Beijing
Xining	Beijing Wanliu
311,691
Chengdu
Xining
Huayuan
Chengdu	GROSS FLOOR
AREA (sqm)
Konggang
	Hefei
	Hefei Changjiangxilu
	Hefei Mengchenglu

CHENGDU

KONGGANG

HEFEI

CHANGJIANGXILU

MASTER-LEASED

XINING	DALIAN
HUAYUAN	JINSANJIAO

BHG RETAIL REITAnnual Report 2023

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Key

Highlights

YEAR ENDED 31 DECEMBER 2023

GROSS

REVENUE

S$62.0

MILLION

AMOUNT TO BE

DISTRIBUTED

TO UNITHOLDERS

S$2.21,2

MILLION

NET PROPERTY	PORTFOLIO
INCOME	COMMITTED
S$35.0	95.6%
	OCCUPANCY
MILLION

INDEPENDENT VALUATION3

As at 31 December 2023

RMB4,723

MILLION

+0.4%

year-on-year

1. For the FY 2023 approximately S$0.2 million of the amount available for distribution has been retained for operational expenses and working capital requirements of the REIT.
2. Lower year-on-year mainly due to weakening of RMB against SGD.
3. Based on independent valuation from Colliers International (Hong Kong) Limited as at 31 December 2023.
4. Based on total loans and borrowings principal attributable to Unitholdings divided by total assets attributable to Unitholders.

DISTRIBUTION PER UNIT (DPU)

0.431,2

SINGAPORE CENTS

GEARING4

39.9%

3	REFRESH, REJUVENATE, RE-ENERGISE

Year At

AGlance

APRIL

2023 Tiger Brokers Investor Webinar

FY2022 Annual

General Meeting

FEBRUARY

FY 2022 Results Announcement

• Completion of Refinancing Exercise in March 2022
• Gross Revenue of S$66.4 million
• Strong Occupancy Rate of 95.2%
• Portfolio Valuation up 0.5%

MARCH

CGS-CIMB Trading

Representatives Briefing

The Asia Pacific Best of the Breeds REITs Awards 2023TM BHG Retail REIT was conferred two platinum awards at The Asia Pacific Best of the Breeds REITs Awards 2023TM, specifically in the 'Best Retail REIT (for companies with less than US$1 billion in market capitalisation)' and 'Best Investor Relations' categories.

MAY

1Q 2023 Business Updates

Portfolio Occupancy

Increased 0.9%

Quarter-on-Quarter

Phillip Securities Webinar

REITs Symposium 2023 (organised by REITAS & Shareinvestor)

JUNE

Smartkarma Corporate Webinar

BHG RETAIL REITAnnual Report 2023

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AUGUST

1H 2023 Results Announcement

• Ongoing Tenancy Rejuvenation

Efforts to Enhance Shopper's

Experience

2024

• Healthy Portfolio Occupancy

Rate of 95.8%

SEPTEMBER

The Global CSR &

ESG Awards 2023™

BHG Retail REIT received three awards at The Global CSR & ESG Awards 2023TM. BHG Retail REIT was conferred the Platinum award for 'Best Corporate Communications and Investor Relations' and bronze award for the 'Best Community Programme' and 'CSR & ESG Leadership' categories

NOVEMBER

3Q 2023 Business Updates Committed occupancy rate remains healthy at 95.2% (as at 30 September 2023)

FEBRUARY

FY 2023 Results

Announcement

• Gross revenue and net property income were S$62.0 million and S$35.0 million respectively.
• High committed occupancy rate of 95.6%.

This portion of artwork is contributed by Mr Muhd Saifudeen from Muscular Dystrophy Association (Singapore)

5	REFRESH, REJUVENATE, RE-ENERGISE

BHG RETAIL REITAnnual Report 2023

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REFRESHING CONSUMER EXPERIENCE

As part of our efforts to refresh consumer experience amidst improving consumer sentiments, we continue to engage shoppers and communities with a broad range of marketing activities including music festivals, dance competitions and art & craft activities.

7	REFRESH, REJUVENATE, RE-ENERGISE

Letter

toUnitholders

With prudence, expertise and commitment of the Manager, we are confident that BHG Retail REIT will continue to position itself as a stable investment, and deliver long-term sustainable growth to our Unitholders.

Mr Francis Siu Wai Keung

Chairman

Ms Chan Iz-Lynn

Chief Executive Officer

This portion of artwork is contributed by Mr Muhd Saifudeen from Muscular Dystrophy Association (Singapore)

BHG RETAIL REITAnnual Report 2023

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