Brokers' take

EC World Reit | Buy (initiate) Target price: S$0.81 Jan 8 close: S$0.70 RHB Research Institute, Jan 8

EC World Reit's seven logistics assets in China cater to a thriving e-commerce, logistics and supply chain segment that is expected to remain resilient despite trade tensions. As its properties largely cater to domestic consumption, we see minimal impact from the US-China trade war and could benefit from the government's push to boost domestic growth.

Also, about 70 per cent of EC World's income is backed by sponsor Forchn's master leases, which we expect will continue beyond 2020. Our recent site visit showed that master lease assets are steadily ramping up, with Forchn likely to extend them for another term. We also understand that total income from underlying leases is above the lease payments.