The Business Times

EC World Reit Q3 DPU down 17.9% to S$0.01364

Corinne Kerk
Published Wed, Nov 9, 2022 · 07:35 PM

EC World Real Estate Investment Trust’s : BWCU 0% (Reit) distribution per unit (DPU) fell by 17.9 per cent to 1.364 Singapore cents for its third quarter ended Sep 30, 2022, from 1.662 cents a year ago.

Gross revenue of the China-focused e-commerce logistics landlord was down 5.5 per cent to S$29.8 million for the quarter, from S$31.6 million a year ago.

This was due largely to the translation effect arising from the depreciation of the renminbi against the Singapore dollar by 2.4 per cent year-on-year, relatively higher property expenses and the discontinuance of contribution from Fu Zhuo Industrial, the Reit’s manager said in a regulatory filing on Wednesday (Nov 9).

Master leases with built-in rental escalations contributed approximately 76 per cent of gross revenue in Q3.

Net property income (NPI) slipped 5.4 per cent on the year to S$27.1 million for the quarter, from S$28.6 million.

Distributable income declined 17.8 per cent year on year to S$11 million, from S$13.4 million.

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The distribution will be paid out on Dec 29, 2022, after the record date on Dec 7.

For the nine months ended Sep 30, DPU was lower at 4.134 Singapore cents, from 4.726 cents a year ago, while distributable income fell 12.3 per cent to S$33.5 million. Gross revenue was 0.4 per cent lower at S$93.2 million, while NPI rose 0.9 per cent to S$85 million.

The Reit’s portfolio occupancy for its seven properties remained stable at 98.8 per cent as at Sep 30, and its weighted average lease to expiry (Wale) by gross rental income stood at 1.8 years and 1.6 years by net lettable area.

Excluding Beigang and Chongxian Port Logistics which are properties targeted for divestment, Wale by gross revenue and net lettable area would have been 2 and 1.7 per cent respectively.

Goh Toh Sim, executive director and chief executive of the manager, said the results are “consistent with the improving stability in China during the quarter”.

However, financial market volatility and foreign exchange interventions could have further implications on the Reit’s income and distributions, noted the manager, adding that it is actively discussing with the Reit’s existing lead lenders on the term sheets for the refinancing of its remaining loans due by Apr 30, 2023.

Units of the Reit closed flat at S$0.44 before the results were released.

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