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These 2 Singapore REITS Have Delivered Mixed Performances Recently

We are now in the busiest part of earnings season. Many companies have reported their results in the past few weeks — some of them have had good news to share, some bad, and some a bit of both.

Today we’re looking at two REITs that have recently delivered mixed financial results.

EC World Real Estate Investment Trust (SGX: BWCU), or EC World REIT, is first on the list. EC World REIT is the first Chinese specialized logistics and e-commerce logistics REIT that was listed here in Singapore in July 2016. It owns properties mainly used for e-commerce, supply-chain management, and logistics.

For the quarter ended 31 March 2019, gross revenue and net property income (NPI) were lower by 0.3% and 1.4%, respectively, compared to the same quarter last year. The weaker NPI was due to exchange rate differences. In RMB terms, gross revenue and net property income were 3.0% and 1.9% higher, respectively. Yet, the REIT’s distribution per unit (DPU) was up by 2.2% year on year to 1.501 Singapore cents.

Goh Toh Sim, Executive Director and CEO of the Manager, commented:

“We are pleased to announce another quarter of resilient financial results, underpinned by our portfolio of stable assets. We are also excited to continue to execute our growth strategy with the proposed acquisition of Fuzhou E-Commerce, an integrated e-commerce asset which will significantly increase the REIT’s exposure to the fast-growing e-commerce logistics sector.”

As of 31 March 2019, the REIT’s gearing ratio and committed occupancy rate stood at 31.3% and 99.97%, respectively.

The next REIT on the list is BHG Retail REIT (SGX: BMGU), which focuses on retail malls in China and currently has a portfolio of five properties. Its sponsor is the China-listed Beijing Hualian Department Store Co. Ltd, which is part of the Beijing Hualian Group, one of China’s largest retail operators.

For the quarter ended 31 March 2019, BHG REIT reported that gross revenue grew 2.6% year on year to S$17.9 million, while net property income (NPI) improved by 1.6% to S$11.8 million. Yet, distribution per unit (DPU) declined 20.9% year on year to 1.10 Singapore cents, mainly due to the increase in units issued.

Chan Iz-Lynn, chief executive officer of BHG REIT, commented:

“BHG Retail REIT’s portfolio of community malls delivered another set of robust operational performance during the quarter. Portfolio occupancy rate was 98.5% as at 31 March 2019. Our multi-tenanted malls continued to observe healthy leasing demands as well as strong rental uplift from existing and new tenants. Notwithstanding this, the Manager is not resting on its laurels. We will continue to create organic value through asset enhancement initiatives, and actively pursue potential acquisition growth opportunities, so as to deliver long-term attractive yield to our unitholders.”

As of 31 March 2019, the REIT’s gearing ratio and occupancy rate stood at 32.5% and 98.5%, respectively.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.