With higher occupancies and rental reversions, BHG Retail REIT had 3.2 per cent higher second-quarter gross revenue, reaching S$500,000 (US$367,000).
However, the increase was partially offset by the adoption of VAT reform in China on May 1 last year.
Against a backdrop of rising disposable income and domestic consumption, and urbanisation, the Singapore company’s portfolio of five community retail properties in Mainland China, with their strong experiential-focussed trade mix and steady surrounding catchment, is expected to stay resilient, the group says.
Despite higher property-related tax expenses in Beijing Wanliu Mall, net property income was $600,000 (up 5.7 per cent) for the second quarter and $800,000 (4 per cent) higher for the first quarter, mainly because of an increase in rental revenue.
Its other retail properties are in Chengdu Konggang, Dalian Jinsanjiao, Hefei Mengchenglu and Xining Huayuan, tier-one and -two cities.
Beijing Wanliu is a community mall close to Zhongguancun retail hub, surrounded by high-end residential developments and educational institutions; Chengdu Konggang is a community retail mall serving upper-middle-class shoppers in an emerging residential area; Dalian Jinsanjiao is master-leased to BHG Hypermarket, the only supermarket in the area, and is close to the Huanan retail hub; Hefei Mengchenglu is a comprehensive retail mall serving family-oriented residents; and Xining Huayuan is a retail mall also master-leased to BHG Hypermarket in the political, cultural and business centre of Xining.