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EC World Reit posts lower Q2 DPU amid 'uncertain macro environment'

EC World Reit on Tuesday posted lower second-quarter distribution per unit (DPU) of 1.547 Singapore cents from 1.57 cents, as gross revenue fell amid "an uncertain macro environment", according to the Chinese e-commerce logistics-focused Reit. 

Books will close Sept 3 and distribution is payable on Sept 26. 

The decline in DPU came as second-quarter income available for distribution fell 1.3 per cent to S$12.3 million year-on-year. 

For the quarter ended June 30, gross revenue slid 4.8 per cent to S$23.7 million from the previous year, while net property income (NPI) slipped 7.2 per cent to S$21.2 million from the previous year.

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EC World Reit said that the existing portfolio occupancy "remains strong" at 99.1 per cent with a weighted average leaseto expiry (WALE) of 4.5 years by gross rental income.

In addition, the manager in June obtained unitholders' approval to buy Fuzhou E-Commerce, a warehouse and office building property in Fuyang, Hangzhou, priced at 1.11 billion yuan (S$223.6 million).

The acquisition is expected to have a positive contribution to the earnings of EC World Reit when completed in Q3, the manager said.

Including the leases at Fuzhou E-Commerce, the portfolio WALE is 4.6 years by gross revenue as at June 30. This would provide unitholders "predictability in earnings", the manager added. 

For the half-year ended June 30, EC World Reit posted higher DPU of 3.048 Singapore cents from 3.039 cents. 

Gross revenue declined 2.6 per cent to S$47.6 million while NPI was lower by 4.4 per cent at S$42.3 million. 

Shares of EC World Reit closed down 1.36 per cent at S$0.725 on Tuesday before the results were announced.