5 S-REITs with Chinese assets continued to grow during the lockdown

With the number of infected people falling across China, major Chinese cities have begun to reopen and relax measures.

Shanghai finally reopened on June 1, while some areas of Beijing were allowed to resume work.

The company hopes that the relaxation measures will be a step towards gradual normalization and have a positive impact on operations.

There are 5 S-REITs and property trusts that exclusively invest in Chinese assets.

$Sasseur Reit(CRPU.SG)$ , $BHG Retail Reit(BMGU.SG)$ und $Dasin Retail Tr(CEDU.SG)$ It's a real estate trust, a retail REIT, and $EC World Reit(BWCU.SG)$ It's an industrial Reit, and $CapitaLandInvest(9CI.SG)$ It's a diversified REIT.

1. $CapitaLandInvest(9CI.SG)$ The report reported a 24% year-on-year increase in total revenue for the first quarter of 2022, which in turn drove a 30.4% increase in net property income (NPI).

CLCT notes that in terms of its retail portfolio, shopper traffic and sales increased year over year from January to February until the recent COVID-19 wave in March.

All business parks remained open during the quarter, and operations were unaffected.

However, due to Shanghai's blockade measures, Shanghai's activities in Fengxian and Kunshan Bacheng Logistics Park were suspended.

The trust expects its logistics portfolio to be largely elastic.

$CapitaLandInvest(9CI.SG)$ YTD's 2022 performance was 16.56%.

2. $Sasseur Reit(CRPU.SG)$ The reported distributable revenue was S$24.7 million, up 4.7% year over year but down 2.4% month over month.

Its store sales for the first quarter of 2022 were $1,096.2 million, down 3.6% year over year due to the weakening of buying sentiment and shopper traffic after the latest COVID-19 pandemic.

However, the REIT stated that the cities where its 4 locations are located have no known COVID-19 outbreaks.

$Sasseur Reit(CRPU.SG)$ YTD's 2022 performance was 0.9%.

3. $EC World Reit(BWCU.SG)$ The report reported a 7.4% year-on-year increase in NPI for the first quarter of FY2022.

However, allocations to unitholders were reduced by 9.4%, mainly affected by withholding tax expenses and pre-termination compensation provisions arising from the return of funds to third party tenants of Fortune Industries due to mandatory levies.

The REIT notes that although China's recent COVID-19 lockdown has caused bottlenecks in the global supply chain, ECW's real estate portfolio has not been significantly affected by the recent blockade.

$EC World Reit(BWCU.SG)$ The full year of 2022 results was -19.1%

4. $BHG Retail Reit(BMGU.SG)$ It owns 6 properties in 5 cities in China - Xining, Chengdu, Hefei, Dalian, and Beijing.

Despite recent uncertainties and headwinds from COVID-19, the REIT said it remains focused on actively managing and enhancing existing assets and seeking acquisition opportunities.

On March 31, 2022, nearly 80% of the net rentable space of the REIT was leased to tenants in the experiential trading industry.

$BHG Retail Reit(BMGU.SG)$ YTD's 2022 performance was -12.21%.

5. $Dasin Retail Tr(CEDU.SG)$ It was announced in March 2022 that the Trust has entered into a non-binding Memorandum of Understanding (MOU) to explore the sale of two assets — Shiqi Metro Mall and Xiaolan Metro Mall.

Although a new round of COVID-19 cases and the country's pandemic prevention and control policies have slowed the pace of consumer spending recovery, the trust said it will continue to find ways to achieve organic growth by improving the tenant mix, introducing popular brands, or implementing asset enhancement initiatives.

$Dasin Retail Tr(CEDU.SG)$ YTD's 2022 performance was -10.4%.