BHG Retail REIT · SGX:BMGU
BHG Retail REIT — Q1 2016 Earnings Presentation
27 slides from BHG Retail REIT's earnings presentation, May 12, 2016
Slide 1: BHG Retail REIT Financial Results
BHG RETAIL REIT Financial Results for the period from 11 December 2015 (Listing date) to 31 March 2016 12 May 2016
Slide 2: Important Notice
Important Notice The past performance of BHG Retail REIT is not necessarily indicative of its future performance. This presentation shall be read in conjunction with BHG Retail REIT’s financial results for the quarter ended 31 March 2016 in the SGXNET announcement. Certain statements made in this pr
Slide 3: Contents
Contents About BHG Retail REIT Key Highlights Financial Results Operational Performance Growth Strategy Market Outlook 3
Slide 4: About BHG Retail REIT
Beijing Wanliu 北京万柳 About BHG Retail REIT 4
Slide 5: About BHG Retail REIT
About BHG Retail REIT Sponsor Beijing Hualian Department Store Co. Ltd. (the “Sponsor” or “BHDS”) BHG Retail Trust Management Pte Ltd. REIT Manager (100% indirectly owned subsidiary of the Sponsor) (the “Manager”) Investment Strategy Income-producing real estate used primarily for retail purpo
Slide 6: BHG Retail REIT - Portfolio
BHG Retail REIT - Portfolio Strategically located in high-growth cities Dalian Beijing 大连 Xining 北京 西宁 Dalian Property Urban per capita Xining Mall disposable Urban per capita income (CAGR): 12.1% disposable Retail sales (CAGR): Hefei income (CAGR): 16.3% 合肥 10.4% Chengdu Retail sales (CAGR)
Slide 7: Strong Sponsor Group
Strong Sponsor Group Beijing (17) Chifeng (1) 5 BHG Retail REIT Portfolio Properties Beijing Mall Tongchengjie Mall Wuyi Mall Longbeicun Mall Chifeng Mall (1) 12 Voluntary Sponsor ROFRs in Pipeline Guanganmen Mall Changying Mall Shunyijinjie Mall Gongyixiqiao Mall Shenyang (3) Shenyang Wulihe Mall 2
Slide 8: Key Highlights
Chengdu Konggang 成都空港 Key Highlights
Slide 9: Key Highlights
Key Highlights Financials Achieve Annualised Distribution Yield1 of 6.13% Deliver DPU of 1.50 cents, beats forecast Gross revenue and NPI outperform pre-listing year-on-year results and achieve IPO forecast Low gearing of 29.5% Operations Portfolio occupancy rate of 98.3% Well staggered
Slide 10: Financial Highlights
Hefei Mengchenglu 合肥蒙城路 Financial Highlights
Slide 11: Achieve Annualised Distribution Yield of 6.13%
Achieve Annualised Distribution Yield4 of 6.13% Actual1 Forecast2 Change Portfolio Group Level (S$’000) (S$’000) (%) Gross revenue 19,688 19,573 0.6 Property operating expenses (7,638) (7,566) 0.9 Net property income 12,050 12,007 0.4 Amount available for distribution3 5,177 5,162 0.3 Distribution p
Slide 12: Healthy Financial Position
Healthy Financial Position Actual Portfolio Group Level As at 31 March 2016 (S$’000) Investment Properties 768,517 Cash and cash equivalents 36,437 Other assets 10,205 Total assets 815,159 Loans and borrowings 219,844 Other liabilities 54,710 Total liabilities 274,554 Net assets 540,605 Net assets a
Slide 13: Low gearing & no refinancing requirements till end 2017
Low gearing & no refinancing requirements till end 2017 Low gearing of 29.5% No refinancing requirements until December 2017 Weighted average term to maturity of 3.1 years Debt maturity profile (S$ million) 140.4 78.3 1.2 1.2 2016 2017 2018 2019 13
Slide 14: Operational Performance
Hefei Mengchenglu 合肥蒙城路 Operational Performance
Slide 15: Portfolio Summary
Portfolio Summary Beijing Wanliu Chengdu Konggang Hefei Mengchenglu Xining Huayuan Dalian Jinsanjiao Beijing Chengdu Hefei Xining Dalian Portfolio Valuation1 S$430.3m S$131.3m S$121.9m S$59.3m S$35.2m S$778.0m NLA2 (sqm) 54,644 40,059 25,235 20,807 15,345 156,089 Commence Operations Aug 2010 Dec 201
Slide 16: Portfolio Summary
Portfolio Summary Breakdown of NLA(1) by Property Breakdown of Valuation2 by Property Dalian 9.8% Dalian 4.5% Xining 7.6% Xining 13.3% Beijing Hefei 15.7% 35.0% Beijing Hefei 16.2% Chengdu 55.3% Chengdu 16.9% 25.7% Breakdown of Gross Revenue1 by Property Breakdown of Net Property Income1 by Property
Slide 17: Portfolio Tenant Mix
Portfolio Tenant Mix Breakdown of Gross Rental Income1 Breakdown of NLA1 by Trade Sector by Trade Sector Specialty Stores Specialty Stores Lifestyle 3.7% 0.8% Lifestyle 2.0% 0.9% Recreation 5.9% Fashion Recreation 11.0% Fashion Supermarket 14.1% 33.4% 20.0% Services Supermarket F&B 19.7% 18.8% F&B 3
Slide 18: Operational Performance Highlights
Operational Performance Highlights Portfolio occupancy rate of 98.3% Well staggered lease expiry profile Continual proactive engagement of community & tenants A tenancy rejuvenation exercise was carried out at Beijing Wanliu last year, where 25 new brands were introduced to provide the mall
Slide 19: Well-staggered lease expiry profile
Well-staggered lease expiry profile Weighted average lease expiry (WALE) (No. of years) By Committed NLA 9.3 By Gross Rental Income 5.8 52.9% 30.1% 20.3% 22.0% 18.8% 13.1% 10.6% 9.8% 7.2% 6.5% 4.7% 4.0% FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2021and beyond By Gross Rental Income By Committed NL
Slide 20: Engaging the community & tenants
Engaging the community & tenants Beijing Wanliu Children: Easter Egg Coloring Cultural Heritage Conservation Makeup Seminar & Demonstration 20
Slide 21: Engaging the community & tenants
Engaging the community & tenants Hefei Mengchenglu Outdoor Singing Contest Lunar New Year Chinese Calligraphy Elfin English Children Games 21
Slide 22: Engaging the community & tenants
Engaging the community & tenants Chengdu Konggang Floral Arrangement Class Horticulture – Members activity Spring Summer Fashion Parade Children Creativity DIY Kites 22
Slide 23: Proactive asset management
Proactive asset management A tenancy rejuvenation exercise at Beijing Wanliu was carried out last year Beijing Wanliu 北京万柳 Reinforces Beijing Wanliu’s positioning as a premium community mall Provides the mall with a wider range of selections, and serves as an opportunity to fine-tune the mall’
Slide 24: Growth Strategy
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Slide 25: Growth Strategy
Growth Strategy Organic Growth Inorganic Growth 12 Voluntary Explore acquisition Proactive Proactive opportunities in asset asset Sponsor ROFRs other quality management enhancement properties in the income-producing pipeline retail properties Reinforce Identify opportunities 12 ROFR Properties (
Slide 26: Market Outlook
Market Outlook China targets GDP growth of 6.5 to 7.0% year-on-year in 2016 China’s economy registered a 6.9% year-on-year growth in 2015. The preliminary estimate of China’s 2016 first quarter growth is 6.7% year-on-year. In view of the ongoing economic transformation, the Chinese government targ
Slide 27: Thank you
Thank you For further information and enquiries: Nigel Nai Zi Investor Relations Manager BHG Retail Trust Management Pte. Ltd. Contact: (65) 6805 8283 Email: ir@bhgreit.com Mailing address: 100 Beach Road, #25-11 Shaw Tower, Singapore 189702 Website: http://www.bhgreit.com