
BHG Retail REIT entered this earnings season with a troubled reputation and a market price stuck at S$0.445, flat over the past week and slightly down over three months. The story has been about pressure on profits and debt costs. The latest half year numbers do not really challenge that view. The headline is the strain on the income statement and balance sheet. The trust remains loss making over the past year and interest costs are still not comfortably covered by earnings from continuing operations.
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BHG Retail REIT still gives supporters a few things to hold on to. Revenue over the latest half remained around S$54 million, which is reasonably steady for a small China focused retail portfolio. Earnings from continuing operations stayed positive at S$1.157 million on a trailing basis, which means the core properties are still producing some income before financing and other items. For investors who care most about occupancy and rental continuity, these figures can be read as signs that the operating platform has not broken down despite ongoing pressure.
The bearish read on BHG Retail REIT is largely confirmed by these numbers. The trust remained loss making over the past year, and that loss widened on a trailing basis to S$2.053 million along with a larger basic loss per unit. Earnings from continuing operations slipped from S$1.509 million to S$1.157 million, while interest costs are still not comfortably covered. With the unit price flat over 7 days and slightly down over 3 months, the market does not seem to be seeing quick relief on these pressures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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