EC World Reit cuts Q3 DPU by 6.8% to 1.388 S cents

EC World Real Estate Investment Trust's (EC World Reit) distribution per unit (DPU) dropped 6.8 per cent to 1.388 Singapore cents for the three months ended Sept 30, from 1.489 cents a year ago.

Gross revenue was up 10.8 per cent to S$28.5 million for the quarter, from S$25.7 million a year ago. Net property income (NPI) grew 14 per cent on the year to S$26.1 million for the quarter, from S$22.9 million.

The increases in gross revenue and NPI were mainly due to contribution from integrated e-commerce logistics asset Fuzhou E-commerce, which was acquired in August 2019, as well as organic rental escalations, the Reit manager said in a bourse filing on Monday.

Distribution to unitholders declined 5.9 per cent to S$11.2 million from S$11.9 million a year ago, after the Reit retained 9 per cent or about S$1.1 million of the total amount available for distribution in view of the uncertain Covid-19 situation and global economic climate.

If not for the retention, total amount available for distribution would have been S$12.3 million, up 3.5 per cent year on year from S$11.9 million.

The distribution will be paid out on Dec 29, after the record date on Dec 14.

Goh Toh Sim, executive director and chief executive of the Reit manager, said: "We have noted improvement in EC World Reit's portfolio with the renewal of a major lease in relation to Hengde Logistics and signing of new leases at Wuhan Meiluote at competitive rates."

Units of EC World Reit closed at 70.5 Singapore cents on Monday, up one cent or 1.4 per cent, before the announcement.