BHG Retail REIT reported net property income of S$14.1 million for the six months ended Jun 30, 2026, as gross revenue reached S$26.8 million. The performance was supported by sustained demand at its community-focused malls, despite what the Manager described as selective consumer spending and softer leasing conditions in China.
Earnings translated into a distribution per unit of 0.12 Singapore cent, payable on 28 Sep 2026. The REIT will distribute S$0.6 million to unitholders from 1H 2026 income.
Revenue was underpinned by a committed portfolio occupancy of 94.0 per cent and a weighted average lease expiry of 2.2 years by gross rental income. Experiential trades—including food-and-beverage, family entertainment and value retail—made up 66.8 per cent of net lettable area, reinforcing the malls’ positioning as neighbourhood hubs. New or refreshed tenants during the half included Dino World at Hefei Changjiangxilu, themed restaurant Nanyale at Hefei Mengchenglu, and technology brands DJI, Insta360 and Bambu Lab at Beijing Wanliu.
The REIT’s gearing ratio stood at 40.1 per cent with total borrowings of S$303.9 million. The Manager cited uneven consumption patterns and higher funding costs as headwinds but said active lease management helped sustain occupancy and rental income.
During the half, management continued to organise community events such as a movie premiere at Chengdu Konggang and Chinese New Year festivities at Beijing Wanliu to drive footfall. The REIT also reiterated its intention to pursue yield-accretive opportunities while maintaining “prudent capital management”.
Chief executive officer Chan Iz-Lynn noted that the portfolio’s focus on essential retail and experiential offerings helped meet everyday needs in surrounding neighbourhoods, adding that tenant curation and local engagement would remain priorities. She said the REIT is positioned to benefit from ongoing policy measures aimed at boosting domestic demand and service consumption in China.
Looking ahead, the Manager expects China’s emphasis on healthcare, tourism, sports, culture and other service-led sectors under its latest five-year consumption plan to offer additional leasing prospects. The International Monetary Fund projects China’s GDP to expand by 4.6 per cent in 2026. The Manager stated it will concentrate on portfolio resilience, disciplined leverage and sustainable value creation for unitholders.