EC World Reit's Q1 DPU up 32.3%

EC World Real Estate Investment Trust's (EC World Reit) distribution per unit (DPU) rose 32.3 per cent to 1.532 Singapore cents for the first quarter ended March 31, 2021, from 1.158 cents the year before.

Gross revenue was up by 30.9 per cent to S$30.8 million. Net property income (NPI) also rose 30.9 per cent, to S$27.7 million.

The increases in gross revenue and NPI were mainly due to the absence of one-off rental rebates given to tenants to mitigate the adverse impact of the Covid-19 situation and the strengthening of the yuan by 3.5 per cent year-on-year.

Distribution to unitholders rose 32.9 per cent to S$12.4 million. EC World Reit's policy is to distribute at least 90 per cent of the total distributable amount. The manager has decided to retain 10 per cent due in part to uncertainties from the prolonged pandemic.

Distributions are expected to be made on June 29.

As at March 31, 2021, the occupancy of Reit's eight properties was 99.1 per cent.

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Aggregate leverage was 38.3 per cent with a blended running interest rate of 4.1 per cent for Q1 FY21 and a weighted average debt maturity of 1.4 years.

The board has decided to maintain a gearing ratio of not more than 40 per cent for prudent financial management, it said.

The counter closed flat at 73.5 Singapore cents on Tuesday.