Dip comes as NPI declines 6.2% to S$14 million from S$15 million in H2 FY2024

 

[SINGAPORE] BHG Retail Reit on Friday (Feb 27) reported a 72 per cent decline in distribution per unit (DPU) for the second half of 2025, alongside lower net property income (NPI).

 

The China-focused retail real estate investment trust&rsquo s (Reit) DPU for the six months ended Dec 31, 2025 fell to S$0.0007 from S$0.0025 in the year-ago period. The lower DPU came on the back of lower distributable income, with the amount to be distributed to unitholders falling 74.5 per cent year-on-year to S$326,000.

 

The Reit reported a decline in revenue in the second half of 2025, amounting to S$27 million &ndash down 8.8 per cent. Lower property operating expenses during the period, down 11.4 per cent to S$13 million, partially offset this, but NPI still experienced a year-on-year decrease of 6.2 per cent to S$14 million from S$15 million in H2 FY2024.

 

The Reit&rsquo s finance costs fell 14.8 per cent to S$7.9 million in H2 FY2025, from S$9.3 million in the same period a year earlier, mainly due to lower interest expenses on floating rate loans and the repayment of loan principal.

 

For the full year, the income to be distributed to unitholders fell 42.8 per cent to S$1.5 million, while DPU slipped to S$0.0029 from S$0.0050 in FY2024.

 

The manager attributed the weaker distribution mainly to one-time expenses incurred during the syndication loan roll-over in March 2025.

 

For the full year, revenue fell 9.6 per cent to S$55.1 million, while NPI slipped 11.6 per cent to S$29 million. Finance costs were down 16.7 per cent in FY2025, falling to S$16.1 million from S$19.3 million in FY2024. The total loss for the year after taxation attributable to unitholders was S$1.8 million, an improvement from the S$2.3 million loss reported in FY2024.

 

Chan Iz-Lynn, chief executive officer of the manager, noted that the manager remains focused on maintaining portfolio stability. 

 

&ldquo The manager will continue to execute its strategy of proactive asset management, prudent capital management and sustainable value creation for unitholders,&rdquo she said.

 

The portfolio occupancy rate stood at 93.4 per cent as at Dec 31, 2025, lower than 95.8 per cent a year earlier. BHG&rsquo s gearing ratio stood at 41.6 per cent with an average cost of debt of 4.2 per cent.

 

According to the financial statements, the consolidated interest coverage ratio of the group was 1.7 times, which remained above the regulatory minimum of 1.5 times.

 

The group&rsquo s current liabilities amounted to S$58.1 million as at Dec 31, 2025, a significant drop from S$336.1 million a year earlier. This decrease was primarily because the group and the Reit successfully rolled over their offshore secured borrowing facilities of S$252 million. 

 

The new facilities will mature in March 2028 and March 2030, successfully moving these obligations from current to non-current liabilities.

 

Net asset value per unit fell to S$0.68 as at December 2025, from S$0.72 a year earlier.

 

Yangzijiang Shipbuilding hits record in intraday trade on improved earnings

CGSI lifts its target price to S$4.95, a 14.1 per cent premium above its Friday closing price

 

[SINGAPORE] Shares of   Yangzijiang Shipbuilding   : BS6 +10.71% rallied on Friday (Feb 27) after the Chinese vesselmaker posted higher earnings for its second half. 

 

The counter hit an record high in intraday trade and climbed as high as S$4.37 as at 11.20 am, up by 11.5 per cent or S$0.45 from Thursday&rsquo s closing price of S$3.92, with some 45.1 million shares changing hands. 

 

This marks the highest price the stock has reached since it listed on the mainboard of the Singapore Exchange (SGX) in Apr 2007, data from ShareInvestor, Yahoo Finance and Google Finance shows. 

 

It finished Friday 10.7 per cent or S$0.42 higher at S$4.34, as the top traded stock on the SGX by volume, with close to 70.5 million shares transacted.  

 

On Wednesday, Yangzijiang Shipbuilding posted a 24.6 per cent rise in net profit to 4.5 billion yuan (S$827.4 million) for its second half ended Dec 31, from 3.6 billion yuan in the corresponding year-ago period. This brought its FY2025 earnings to 8.6 billion yuan, 30.2 per cent higher than the previous year&rsquo s 6.6 billion yuan. 

 

Its revenue rose 15.8 per cent on the year to 15.6 billion yuan for the half-year, and climbed 7.4 per cent to 28.5 billion yuan for the full-year. The topline growth was fuelled by the progressive construction of vessels secured at higher newbuild prices. 

 

CGSI in a Friday report maintained its &ldquo add&rdquo call for Yangzijiang Shipbuilding, citing the group&rsquo s earnings growth &ndash backed by a US$22.4 billion orderbook &ndash and an attractive nine times forward price-to-earnings ratio. 

 

The brokerage raised its target price for the counter from S$4.51 to S$4.95, a premium of 14.1 per cent above the stock&rsquo s Friday closing price.  

 

CGSI analyst Lim Siew Khee noted that the shipbuilder&rsquo s final dividend of S$0.20 per share for FY2025, an increase from S$0.12 per share in FY2024, implies a 50 per cent payout ratio which is a &ldquo positive surprise&rdquo . 

 

Similarly, DBS said on Thursday that it would likely maintain its &ldquo buy&rdquo call on the counter, with its S$3.80 target price under review. 

 

DBS analyst Ho Pei Hwa noted that the stock&rsquo s FY2025 net profit beat consensus by 3 to 4 per cent, and that the roughly US$290 million worth of new orders secured by the group in December brings its full-year order wins to around US$2.5 billion. 

BHG Retail REIT has reported a committed occupancy rate of 94.2% and a weighted average lease expiry (WALE) by gross rental income of 2.3 years in its 3QFY2025 business update.

 

WALE by committed net lettable area came in at 4.4 years as at Sept 30.

 

The REIT&rsquo s aggregate borrowings drawn down as at Sept 30 is $304.9 million.

 

As at Sept 30, gearing ratio stood at 42%, and interest coverage ratio at 1.8 times. Average cost of debt came in at 4.4%.

 

The manager of the REIT says that it remains focused and committed to proactively managing the existing portfolio, and to pursue growth.

 

The manager of BHG Retail REIT has reported a distribution per unit (DPU) of 0.22 cents for the 1HFY2025 ended June 30, down from the 0.25 cents declared in the same period a year ago.

 

The REIT says that this is due to $100,000 that is available for distribution being retained for operational expenses and working capital requirements.

 

The REIT reported a gross revenue of $28.1 million for the 1HFY2025, 10.4% y-o-y. This is due to the weakening of the Chinese renminbi against the Singapore dollar, lower occupancy rates and rental support provided to Dalian and Xining.

 

As such, net property income declined by 16.1% y-o-y lower to $15 million.

 

As at June 30, the REIT&rsquo s portfolio occupancy rate stood at 95.1%, and weighted average lease expiry at 2.7 years by gross rental income and 4.4 years by net lettable area.

 

As at June 30, the REIT has 80% of borrowings denominated in Singapore dollars. It has total assets worth $871 million and net assets worth $495.4 million as at end June.

The REIT&rsquo s aggregated borrowings drawn down as at June 30 stood at $296.8 million, and gearing ratio stood at 41.7%. Average cost of debt stood at 4.8% and interest coverage ratio stood at 1.8 times as at end June.

Gross revenue is down 10% to S$28.1 million

 

[SINGAPORE]   BHG Retail Reit&rsquo s distribution per unit (DPU) fell by 12 per cent to S$0.0022 for its first half year ended June, from S$0.0025 the year before.

 

Gross revenue for the period was down 10 per cent to S$28.1 million, from S$31.3 million in the year ago period, according to the China-focused real estate investment trust unaudited financials released on Thursday (Aug 7).

 

BHG attributed this decline mainly to the weakening of the renminbi against the Singapore dollar, as well as lower occupancy rates and rental support provided to properties in the Chinese cities of Dalian and Xining. 

 

Therefore, the net property income for the first six months fell 16.1 per cent to S$15 million, from S$17.9 million the year before.

 

The amount to be distributed to unitholders for H1 was down 11.3 per cent to S$1.1 million, from S$1.3 million the year before.  

 

The distribution will be paid out on Sep 26, after the books are closed on Aug 20.

 

Approximately S$0.1 million of the income available for distribution for H1 will be retained for operating expenses and working-capital requirements of the Reit, the manager noted.  

 

Chan Iz-Lynn, chief executive officer of the manager, said the Reit&rsquo s proactive and disciplined approach to portfolio management has helped it maintain operational stability despite macroeconomic challenges. 

 

As at end June, the portfolio maintained an occupancy rate of 95.1 per cent, with a weighted average lease expiry of 2.7 years by gross rental income and 4.4 years by net lettable area.

 

Chan added that China&rsquo s post-pandemic recovery &ndash supported by policy tailwinds and resilient domestic demand &ndash offers strong long-term growth prospects. 

 

&ldquo Our portfolio of strategically located community malls is well-positioned to benefit from this uptrend,&rdquo she said, adding that the manager will continue to focus on curating relevant tenant mixes, enhancing the shopper experience, and exploring yield-accretive acquisitions to strengthen its appeal as a long-term income investment.

 

As at Jun 30, the Reit&rsquo s gearing ratio was 41.7 per cent, with total borrowings amounting to S$296.8 million. Around 80 per cent of the debt was denominated in Singapore dollars, with the remainder in renminbi.

 

[SINGAPORE] Department store BHG is downsizing its flagship Bugis Junction outlet &ndash its last remaining permanent store &ndash from three to two levels.

 

This follows the March closure of its Junction 8 store, which will be replaced by home furnishings brand Nitori. Nitori will also take over the third-floor space BHG used to occupy at Bugis Junction.

 

The scaling down of BHG&rsquo s Bugis Junction outlet comes on the back of other store closures. Besides Junction 8, it has shuttered four stores here since 2022, in Raffles City Shopping Centre, Jurong Point, Clementi Mall and Lot One.

 

It follows a series of other closures of large department stores here.

 

&ldquo BHG remains a tenant at Bugis Junction on Levels 1 and 2, and we continue to work closely with them to introduce new brands,&rdquo said a spokesperson for Bugis Junction. BHG declined comment.

 

In February, BHG opened a pop-up store at The Centrepoint, which will operate until August.

 

BHG Singapore began in 1994 as Seiyu Wing On Department Store. In 2007, it was acquired by Beijing Hualian Group, one of China&rsquo s largest commercial chain retailers, and has operated under the brand name BHG for the past 18 years.

 

Homemaker Brenda Thio, 53, said: &ldquo It is sad that these stores that have been around for so long are either gone or downsized.&rdquo

 

But she said she mainly shops online now. &ldquo I hardly shop at BHG and have bought only pillows, bolsters or bed sheets there once every few years.&rdquo

 

A broader trend of decline

Large department stores here and worldwide have faced decline owing to increasing competition from online shopping, exacerbated by the Covid-19 pandemic.

 

Japanese chain Isetan will shutter its Tampines Mall outlet in November, after about 30 years.

 

At its 2013 peak, it had six stores in Singapore. Its last closure was Isetan Katong in Parkway Parade in 2022. After closing the Tampines store, it will be left with two outlets &ndash Isetan Scotts and Isetan Serangoon Central.

 

Home-grown department store OG closed its Orchard Point store in 2022, after 18 years. Its remaining stores are in People&rsquo s Park and Albert Street.

 

Metro closed its flagship Centrepoint store in 2019 after five years, with two remaining stores at Paragon and Causeway Point.

 

And two department store chains which used to be household names have called it quits. Robinsons, which still has an online store, shut its last physical store at Raffles City Shopping Centre in 2021, while John Little exited the local retail scene in 2017, after closing its Plaza Singapura outlet.

 

Market observers said that with e-commerce offering a greater variety of products, competitive pricing and the convenience of home delivery, people are increasingly less inclined to visit large department stores.

 

&ldquo Today&rsquo s shoppers increasingly seek personalised, curated and experiential retail experiences,&rdquo said Leung Sau Yee, senior lecturer at Singapore Polytechnic&rsquo s School of Business. &ldquo Traditional department stores, with their generalist, one-size-fits-all model, often fall short of these expectations.&rdquo

 

Many department stores also rely heavily on mall operators to drive engagement, she said. Without distinctive products, brand curation or compelling in-store experiences, they struggle to offer shoppers a strong reason to return.

 

Department stores have traditionally been anchor tenants in malls. But operating large-scale stores in prime retail locations, such as Bugis Junction, means incurring high rental, staff and inventory costs. As footfall declines, it becomes increasingly difficult to justify maintaining such expansive physical spaces from a profitability standpoint, experts said.

 

Associate Professor Lau Kong Cheen, head of the Singapore University of Social Sciences&rsquo marketing programme, said department stores have been supplanted by large malls that offer a curated mix of specialised outlets. In short, malls are mega department stores.

 

&ldquo Malls house dedicated retailers for categories such as footwear, cosmetics, skincare, fashion apparel, accessories, jewellery and homeware,&rdquo he said. &ldquo Each speciality store provides a focused brand experience that resonates more with today&rsquo s discerning shoppers.&rdquo

 

Professor Lawrence Loh, from NUS Business School&rsquo s department of strategy and policy, said: &ldquo Department stores cannot continue to be more of the same, providing huge varieties for all customers. If they are everything to everybody, they may end up as nothing to nobody.&rdquo

 

From product-centric to experience-centric

What could make the department store relevant again in a tough market?

 

Prof Loh suggested merging the physical store with a digital one to offer holistic shopping experiences that are not found online.

 

&ldquo The &lsquo touch-and-feel&rsquo in shopping is still valuable, but stores must give sufficient incentives to prevent the undesirable consumer behaviour of testing at stores and then going online to purchase elsewhere at lower prices,&rdquo he said. &ldquo Department stores face the real challenge of being free showrooms for the low-cost e-commerce stores.&rdquo

 

Other experts agree on the need to invest in omnichannel integration with a seamless blend of online and offline experiences, such as allowing customers to purchase online and collect in-store, or checking stock levels in real time, to compete with pure e-commerce players.

 

Ethan Hsu, head of retail at real estate consultancy Knight Frank Singapore, said that technology such as personalised apps, fitting rooms that use augmented reality and artificial intelligence-driven inventory can improve efficiency and customer experience.

 

They can also cater to modern preferences like sustainability, he said.

 

In addition, he suggested community marketing activities that can build loyalty and differentiate stores from online retailers. These include supporting local charities, or hosting community events and cultural celebrations.

 

Prof Lau suggested that stores frequently introduce thematic changes &ndash for instance, cultural themes from different countries &ndash to their product ranges.

 

&ldquo Just like museums and art galleries &ndash they change their display by curating new exhibits to draw domestic visitors to make repeat visits,&rdquo he said.

 

Exclusive collaborations with brands that have a limited presence in Singapore &ndash including emerging international brands and local designers &ndash could help, Prof Lau added.

 

And stores can transform themselves into lifestyle destinations by integrating cafes with speciality in-house brews and food, and branded dining ware sold in-store, he said.

 

Offering experiences such as personal colour analysis, cooking or baking workshops and food-and-wine pairings can make shopping more engaging, and cannot be replicated by online retailers, said Leung.

 

She added: &ldquo Ultimately, for department stores to thrive, they must shift from being product-centric to experience-centric, staying attuned to evolving consumer values and behaviours.&rdquo  

 

BHG Retail REIT has reported a distribution per unit (DPU) for the FY2024 ended Dec 31, 2024 of 0.50 cents, a 16.3% y-o-y increase. 

 

The REIT&rsquo s DPU for 2HFY2024 increased to 0.25 cents. 

 

Gross revenue for the FY2024 decreased marginally to $61 million, as well as net property income, which decreased to $32.8 million for the reporting period. 

 

The decrease in gross revenue was mainly due to weakening of the Chinese RMB against the Singapore dollar. The REIT says that gross revenue for FY2024 was higher than FY2023 in RMB terms. 

 

Despite this slight decline in performance, the REIT&rsquo s DPU for the full year increased slightly due to lower financial cost. For FY2024, about $0.3 million of the amount payable for distribution has been retained for operational expenses and working capital requirements of the REIT. 

 

Across its six properties, the REIT reported a 95.8% committed occupancy rate as at Dec 31, 2024. 

 

The REIT&rsquo s weighted average lease expiry across its 179,123 net lettable area (NLA) sqm is 5.1 years. 

 

Its aggregate borrowings drawn down is $300.3 million as at Dec 31, 2024, and gearing ratio stands at 39.6%. 

 

Above 80% of its borrowings are denominated in Singapore dollars, and about 50% of offshore borrowings are hedged via interest rate swaps.