EC World Reit Q2 DPU up 10.5% to 1.532 S cents

EC World Reit, which specialises in Chinese logistics properties, posted a distribution per unit (DPU) of 1.532 Singapore cents for the second quarter ended June, 10.5 per cent higher than a year earlier.

Gross revenue for the quarter came in at S$31.2 million, up 10.6 per cent year-on-year, while net property income (NPI) rose 8.1 per cent to S$27.9 million. This was boosted by the strengthening of the yuan, the real estate investment trust (Reit) manager said on Friday.

The total distribution to unitholders for Q2 was 11.1 per cent higher at S$12.4 million. For Q2, the manager resolved to disburse 90 per cent of the total amount available for distribution, retaining the other 10 per cent. This is "in view of uncertainties arising from prolonged Covid-19 pandemic globally", said chief executive of the manager, Goh Toh Sim.

Nevertheless, the manager is now paying out S$2 million worth of distribution previously retained in Q4 2019, Q1 2020 and partially from Q2 2020. As a result, EC World Reit's Q2 DPU is unchanged from Q1.

For H1, EC World Reit's DPU stood at 3.064 Singapore cents, up 20.4 per cent, while NPI was up 18.4 per cent to S$55.6 million.

Occupancy at EC World Reit's eight portfolio properties stood at 99.1 per cent as of end-June. The weighted average lease to expiry is three years by gross rental income and 2.7 years by net lettable area. Its aggregate leverage was 37.6 per cent.

On May 17, EC World Reit disclosed that it had been approached by Forchn International on a potential transaction that could lead to a divestment of the Reit's properties. There are no new updates on this.

Units of EC World Reit closed flat at S$0.815 on Friday.