EC World Reit posts 19.7% increase in Q3 DPU to S$0.01662

THE manager of EC World Real Estate Investment Trust (Reit) has announced distribution per unit (DPU) of 1.662 Singapore cents for the third quarter ended September, up 19.7 per cent from a DPU of 1.388 cents in the year-ago period.

The gross revenue of the China-focused e-commerce logistics landlord grew 10.9 per cent to S$31.6 million in Q3, from S$28.5 million a year ago.

Its net property income (NPI) rose 9.4 per cent to S$28.6 million, from S$26.1 million a year ago.

The Reit manager said the increase in gross revenue and NPI were mainly due to positive straight-line adjustments and the strengthening of the Chinese renminbi (RMB) by 5.2 per cent year on year.

Goh Toh Sim, executive director and chief executive of the manager, said: "In RMB terms and after the relevant distribution adjustments, gross revenue was 0.9 per cent higher year on year, mainly due to organic rental escalations and late-fee income, while NPI was 0.9 per cent lower, largely attributed to higher operating expenses."

Total amount available for distribution was 15.2 per cent higher at S$14.1 million; the Reit manager said 5 per cent will be retained for withholding tax payment upon future profit repatriation.

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After accounting for the amount retained, distribution to unitholders for Q3, to be paid on Dec 29, was 20.3 per cent higher at S$13.4 million, from S$11.2 million a year ago.

As at Oct 31, EC World Reit's portfolio occupancy stood at 99.2 per cent. The Reit manager said this was boosted by a short-term lease of 3 months from Oct 1 at its Wuhan Meiluote property ahead of the annual Singles Day e-commerce shopping fiesta.

The Reit's aggregate leverage stood at 37.9 per cent as at Sep 30, with weighted average debt maturity at 0.88 years.

The Reit manager said it has commenced on its refinancing plans and will offer an update when there is a material development.

Units of EC World Reit closed 0.6 per cent or half a Singapore cent higher at 81.5 cents on Tuesday, before the announcement.