EC World Reit Q4 DPU down 59.1% to S$0.00628
Tessa Oh
EC WORLD Real Estate Investment Trust ’s distribution per unit (DPU) declined 59.1 per cent to 0.628 Singapore cents for the fourth quarter ended Dec 31, 2022, from 1.537 cents for the corresponding period in 2021.
Gross revenue of the China-focused e-commerce logistics landlord was down 11 per cent to S$28.4 million for the quarter, from S$31.9 million in the year-ago period.
After straight-lining of step-up rental, security deposit accretion and other relevant distribution adjustments, EC World’s fourth-quarter gross revenue in RMB terms was 2 per cent lower than in the year before.
This was in large part due to the loss of rental income from Fu Zhuo Industrial – as a result of the compulsory expropriation – as well as lower late-fee income offsets by rental escalations, the Reit manager said in a bourse filing on Thursday (Feb 23).
Net property income (NPI) slipped 9.9 per cent to S$26 million, from S$28.8 million previously.
Distributable income declined 59.1 per cent year on year to S$5.1 million, from S$12.4 million. This was mainly due to an increase in finance costs, higher withholding taxes, and refinancing-related costs, among other things, said the manager in a statement.
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This distribution will be paid out on Mar 29, after the record date on Mar 15.
Meanwhile, for the full year ended Dec 31, 2022, EC World’s distributable income fell 23.8 per cent to S$38.6 million. Gross revenue was 3.1 per cent lower at S$121.6 million, while NPI eased by 1.8 per cent to S$111 million for the full year.
“Our quality assets continued to show resilience, even under challenging operating conditions in FY2022 as restrictions and Covid outbreaks continued to constrain e-commerce logistics growth,” said executive director and chief executive Goh Toh Sim.
“We will continue to focus on reinforcing our long-term capabilities as e-commerce and port logistic assets owner, to prepare for the upturn as activities and mobility recover in China,” he added.
Units of the Reit closed flat on Thursday at S$0.47, before the results were announced.
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