BHG Retail REIT is a pure retail SREIT with all of its properties located in China. It is currently the 2nd smallest market cap SREITs after Eagle Hospitality Trust.
Lease Profile
Occupancy of 94.7% is slightly lower than SREITs median. WALE of 3.7 years is considered long in retail SREIT. All of its income is received in RMB. Weighted average land lease expiry is very short at only 24.93 years, which is the 3rd lowest in SREITs.
Debt Profile
Gearing is healthy at 35.3%. Cost of debt is high at 4.2%, despite all of its debt are secured. Fixed debt is low at 60% which is favorable in current low-interest situations. The interest cover ratio and WADE are low. Around 82% of its debt matured in 2022, which posts a very concentrated debt maturity risk.
Diversification Profile
Its flagship property is Beijing Wanliu Mall contributes 55.6% of GRI, which is a very high percentage. Top tenant contribution is high at 15.8%, however, top 10 tenants contribution is low at 24.4%
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