EC World Reit Q3 DPU up 9%

EC World Reit has posted a distribution per unit (DPU) of 1.57 Singapore cents in the third quarter, up 9 per cent from the same period a year earlier.

Gross revenue in the three months ended Sept 30 rose 0.1 per cent to S$23.9 million. Net property income rose 0.5 per cent to S$22.2 million, due mainly to contributions from the newly-acquired Wuhan Meiluote and partially offset by a weaker yuan.

Distributable income rose 10 per cent to S$12.4 million, lifted by the absence of withholding tax for distribution as well as lower trust expenses. In the third quarter last year, the Reit incurred a 5 per cent withholding tax expense on cash repatriated from the China companies for distribution. Distribution to unitholders would have been 3.3 per cent higher than the third quarter last year gross of withholding tax incurred.

Net asset value per unit was S$0.87 as at Sept 30 from S$0.91 as at Dec 31 last year.

As at Sept 30, the Reit's committed portfolio occupancy was 99.2 per cent, with an underlying end-tenant occupancy of 96.9 per cent by net lettable area.

Aggregate leverage was 30.7 per cent at the end of September. The blended annualised running interest rate for the Reit's loans was 4.4 per cent.

The Reit manager said in the results filing on Wednesday: "Our port logistics assets are located along the largest inland port (Chongxian Port) in Hangzhou which only handles domestic business with no international trade exposure. Similarly, our e-commerce and specialised logistics assets are also focused on the domestic logistic sector and will continue to benefit from the strong economic growth of Hangzhou and Wuhan (both outperforming national averages)."

It added that it is monitoring currency movements closely and will continue to adopt a proactive forex hedging strategy to mitigate risk.

The units closed flat at S$0.685 on Wednesday before results were announced after market close.

The books closure date for the distribution is Nov 30.