BHG Retail REIT (SGX: BMGU) is a retail REIT with shopping malls in China.

BHG Retail REIT’s share price (technically known as unit price for REITs) stands at S$0.61 at the time of writing.

At that price, the retail REIT is valued at a price-to-book (PB) ratio of 0.7 and a distribution yield of around 6%.

Does the retail REIT provide a buying opportunity for long-term investors?

Let’s find out using my 10-step guide to pick the best Singapore REITs.

How to pick the best REITs

As a summary, here are the 10 steps I use to pick the best Singapore REITs:

  1. Growth in Gross Revenue and Net Property Income
  2. Growth in Distribution Per Unit
  3. Property Yield of Between 5% and 9%
  4. Gearing Ratio of Below 40%
  5. Interest Coverage Ratio of Above 5x
  6. Healthy Portfolio Occupancy Rate
  7. Positive Rental Reversions
  8. Presence of Growth Prospects
  9. Acceptable Price-to-Book Ratio
  10. Distribution Yield of Above 5%