BHG Retail REIT · SGX:BMGU
BHG Retail REIT — FY2020 Earnings Presentation
29 slides from BHG Retail REIT's earnings presentation, Feb 26, 2021
Slide 1: FY 2020 Results Presentation
FY 2020 Results Presentation 26 February 2021 BHG RETAIL REIT CREATING VALUE. PURSUING GROWTH.
Slide 2: Content
Content ▪ 2H 2020 Key Highlights ▪ Financial Update ▪ Portfolio Update ▪ Looking Forward Costa Coffee @ Beijing Wanliu Costa Coffee Collaborates with RDV (An Experiential Bookstore) 2
Slide 3: 2H 2020 Key Highlights
2H 2020 Key Highlights +17.8% +20.2% 1.06 +19.1% Gross Revenue Net Property SGD cents Distribution (SGD) Income (SGD) Distribution per Unit 2H 2020 vs 2H 2020 vs Per Unit 2H 2020 vs 1H 2020 1H 2020 2H 20201 1H 20201 Beijing Wanliu 93.5% 35.7% Supermarket Resizing Portfolio Gearing2 Exercise & Asset
Slide 4: Financial Update
Financial Update Photo of Costa Coffee @ Beijing Wanliu 4
Slide 5: Notable Recovery in 2H 2020
Notable Recovery in 2H 2020 2H 2020 vs 1H 2020 2H 2020 vs 2H 2019 Gross Revenue Gross Net Property Gross Net Property FY 2020 Revenue Income Income Revenue 60.6 17.8% 20.2% 79.9% 78.6% SGD million Recovery Recovery 41.0 Net Property 25.3 Income 32.8 19.9 32.8 19.9 FY 2020 27.8 16.5 36.4 SGD million
Slide 6: 2H 2020 Distribution Per Unit Up 19.1% vs 1H 2020
2H 2020 Distribution per Unit Up 19.1% vs 1H 2020 2H 2020 vs 1H 2020 Amount to be Distribution distributed to per Unit1 Unitholders1 Amount to be Distribution 2H 2020 2H 2020 distributed to Unitholders1 per Unit1 1.06 5.2 Singapore cents SGD million 19.6% 19.1% Amount to be Distribution distributed
Slide 7: 2H 2020 Distribution Payment
2H 2020 Distribution Payment Distribution Details Distribution Period 1 July 2020 to 31 December 2020 Distribution Per Unit (SGD) 1.06 cents per unit Distribution Timetable Ex-Date 10 March 2021 Books Closure Date 11 March 2021 Payment Date 31 March 2021 7
Slide 8: Robust Financial Position
Robust Financial Position As at 31 December 2020 SGD million Investment Properties 943.2 Total Assets 995.1 Total Liabilities 382.7 Net Assets 612.4 Net Asset Value Per Unit1 S$0.86 Street Dance Event @ Chengdu Konggang 1. Based on Net assets attributable to Unitholders. 8
Slide 9: Capital Management
Capital Management As at 31 December 2020 Aggregated Gearing Average borrowings Ratio 1 Cost of Debt2 drawn down S$ 294.8 mil 35.7 % 4.1% Interest ▪ More than 80% of borrowings are Coverage Ratio3 denominated in Singapore dollars and US dollars (“Offshore”). Community Art & Craft @ Chengdu Konggang
Slide 10: Portfolio Update
Portfolio Update Photo of Hefei Mengchenglu 10
Slide 11: Portfolio Overview
Portfolio Overview MULTI-TENANTED Dalian Beijing Xining Chengdu Hefei Multi-tenanted Master-leased Beijing Wanliu Hefei Mengchenglu 北京万柳 合肥蒙城路 MASTER-LEASED Chengdu Konggang Hefei Changjiangxilu Xining Huayuan Dalian Jinsanjiao 成都空港 合肥长江西路 西宁花园 大连金三角 11
Slide 12: Portfolio Overview
Portfolio Overview1 6 4,659.0 179,544 93.5% 6.9 Years Net Lettable Area Committed Weight Ave. Lease Properties (RMB million) (NLA) Occupancy Rate Expiry by NLA Valuation2 Beijing Chengdu Hefei Hefei Xining Dalian Wanliu Konggang Mengchenglu Changjiangxilu Huayuan Jinsanjiao Valuation2 2,502.03 661.0
Slide 13: Occupancy Rate & Leasing Demand Remain High
Occupancy Rate & Leasing Demand Remain High Multi-tenanted Master-leased 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec Occupancy Rate 2019 2020 2020 2020 2020 Beijing Wanliu 96.2% 95.0% 93.7% 93.0% 92.7% Chengdu Konggang 94.7% 91.2% 88.8% 90.8% 96.4% Hefei Mengchenglu 95.1% 92.0% 89.9% 78.4% 81.7% Hefei Changj
Slide 14: Lease Expiry Profile
Lease Expiry Profile Weighted average lease expiry (WALE) as at 31 December 2020 By Gross Rental Income: 3.8 years By Committed NLA: 6.9 years Photo of Beijing Wanliu Lease Expiry Profile as at 31 December 2020 47.8% By Gross Rental Income By Committed NLA 46.9% 26.9% 21.7% 17.9% 12.9% 8.3% 9.0% 2.6
Slide 15: Diversified Portfolio Tenant Mix
Diversified Portfolio Tenant Mix About 65% of Gross Rental Income and 80% of NetTrade Lettable MixArea from experiential segment (exclude fashion and specialty stores) As at 31 December 2020 Breakdown of Gross Rental Income Breakdown of Net Lettable Area by Trade Sector by Trade Sector Specialty Sto
Slide 16: Refining Offerings. Driving Rental Growth.
Refining Offerings. Driving Rental Growth. Supermarket Resizing Exercise @ Beijing Wanliu Basement One ▪ Reduced supermarket’s area from 7,231.8 sqm to 4,180.3 sqm, added 19 new retail & F&B tenants. ▪ Increased the mall’s the variety of retail & F&B offerings, invigorated the recovered area, and ga
Slide 17: Enhance Accessibility. Invigorate Community Space.
Enhance Accessibility. Invigorate Community Space. Beijing Wanliu Basement One Asset Enhancement Exercise Enhanced accessibility & traffic flow ✓ New LED Media Panel Pillar between level one (L1) and basement one (B1) ✓ Ancillary visual enhancements Additional Stairway Access From L1 to B1 Installat
Slide 18: Refreshed Tenancies & Concepts @ Beijing Wanliu
Refreshed Tenancies & Concepts @ Beijing Wanliu Costa Coffee’s New Collaboration with SKIMAN (Ski Simulator & Training) “RDV” (An Experiential Bookstore) Starbucks Coffee (New Brand) Jiu Tian Home 九田家 (料理.烧烤) 18
Slide 19: Night Market @ Chengdu Konggang
Night Market @ Chengdu Konggang ▪ Officially launched outdoor night market on 1st Oct 2020, in addition to the container-style food lane. ▪ In response to Chinese government’s guidance to boost “Night Economy 夜间经济”, as most sales are typically generated between 6pm and 10pm. ▪ Ushered in 13 unique t
Slide 20: Marketing Events
Marketing Events PhotoShares Live Broadcast: Internet Celebrity of Beijing AboutWanliu Costa Beijing Coffee Wanliu’s & RDV Offerings Community Seniors Performance @ Hefei Changjiangxilu Chinese Chess 象棋 Competition @ Beijing Wanliu Winter Season Fashion Runway Event @ Chengdu Konggang 20
Slide 21: Marketing Events
Marketing Events Street-Dance Competition @ Chengdu Konggang Celebrity Meeting Session @ Hefei Changjiangxilu Parenting Seminar @ Chengdu Konggang Halloween Party @ Beijing Wanliu 21
Slide 22: Marketing Events
Marketing Events Children-Focused Events Bubble Fun On Halloween Day @ Beijing Wanliu Story-Telling Event @ Hefei Changjiangxilu Children Sports Awareness Event @ Chengdu Konggang Story-Telling Event @ Hefei Mengchenglu 22
Slide 23: Staying Connected with Omnichannel Visitors
Staying Connected with Omnichannel Visitors BHG Mall Launched E-Commerce Platform. Sharing Online Capability Across All BHG Malls. Select Mall ▪ The BHG Mall online platform is launched amid COVID-19 via Wechat Mini-Program. ▪ Keep customers apprise of promotions & events. ▪ Provide a convenient and
Slide 24: Alipay presents Beijing Wanliu with Digital Innovation Collaboration Awards
Alipay presents Beijing Wanliu with “Digital Innovation Collaboration Awards” ▪ Established “Beijing Wanliu – Alipay joint membership card”, which allows joint accumulation of points and vouchers redemption system. ▪ Uses Alipay’s live broadcast/streaming data analysis (of sales, traffic, photo anal
Slide 25: Looking Forward
Photo of Hefei Mengchenglu Looking Forward 25
Slide 26: China's COVID-19 Economic Recovery in 2020
China’s COVID-19 Economic Recovery in 2020 ▪ China’s gross domestic product1 (“GDP”) grew 6.5% in the fourth quarter GDP 2020 (“4Q 2020”) and 2.3% year-on-year (“y-o-y”) for full year 2020 (“2020”). 1Q 2020 2Q 2020 3Q 2020 4Q 2020 +2.3% (y-o-y) GDP -6.8% +3.2% +4.9% +6.5% y-o-y y-o-y y-o-y y-o-y Dis
Slide 27: Looking Forward
Looking Forward Notwithstanding this near-term headwind, the Manager remains focused and committed to proactively manage the existing portfolio, as well as to pursue growth. Creating Organic Value Pursuing Acquisition Growth Proactive Asset Management ▪ Completed acquisition of Hefei Changjiangxilu
Slide 28: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may constitute “forward-looking” statements (including forward-looking financial information). Actual future performance, outcomes and results may differ materially from those expressed in
Slide 29: Thank you
Photo of Beijing Wanliu 北京万柳 Thank you For further information and enquiries: BHG Retail Trust Management Pte. Ltd. Contact: (65) 6805 8283 Email: ir@bhgreit.com Website: http://www.bhgreit.com 29