EC World Reit Q3 net property income down 60.5%; illegally mortgaged units face 2 lawsuits
The Reit is suspended from trading, and it is unlikely to declare any distribution for FY2025
[SINGAPORE] The manager of EC World Reit posted a net property income of S$9 million for its third quarter ended Sep 30, a 60.5 per cent decrease from S$22.8 million in the corresponding year-ago period.
The real estate investment trust (Reit) did not declare any distribution for Q3 FY2025 and it is “highly likely that no distribution will be declared for the financial year 2025”, the manager said on Thursday (Nov 13).
This comes as it is unable to fulfil its liabilities as they fall due, given its current cash situation, the manager added.
EC World Reit’s revenue for the quarter fell 56.9 per cent on the year to S$10.8 million from S$25.1 million.
The declines were attributed to the termination of four master leased agreements upon their expiries, lower contributions from underlying leases and the weakening of the renminbi against the Singapore dollar.
However, this was offset by income contributions from new third-party leases secured for Hengde Logistics Phase I, the manager said.
As at Sep 30, 2025, the Reit’s occupancy stood at 84.3 per cent, as its weighted average lease expiry was 0.9 year by gross rental income and 1.2 years by net lettable area.
Update on legal proceedings
The manager said in a separate announcement that it has appealed a ruling by the People’s Court of Fuyang District, Hangzhou, made in April 2025. The ruling dismissed the Reit’s application to invalidate the mortgage contracts concerning Fuzhou E-Commerce.
The outcome of the appeal is currently pending in the Hangzhou Intermediate People’s Court, the manager said.
Fuzhou E-Commerce is one of the three properties owned by EC World Reit that were mortgaged without its consent or knowledge between Nov 20, 2023 and Nov 24, 2023. These unauthorised mortgages were created in favour of two entities linked to the Fuyang government in China, according to a bourse filing dated Sep 1, 2024.
The other two properties are Fuheng Warehouse and Hengde Logistics.
The manager added that one of the Fuyang government-linked entities, Fuyang Futoufa, has inititated two cases against the three illicitly mortgaged properties, which are subsidiaries of EC World Reit.
One lawsuit was lodged against Fuzhou E-Commerce and Hengde Logistics in relation to guarantees both signed on Sep 26, 2023, for a loan of up to 140 million yuan (S$25.7 million). The loan was granted by Fuyang Futoufa to Forchn, the Reit’s sponsor.
The other lawsuit is against all three of the properties, in relation to guarantees they signed on Nov 20, 2023, for a loan of up to 120 million yuan granted by Fuyang Futoufa to the sponsor.
EC World Reit’s units have been suspended from trading on the Singapore Exchange since Aug 31, 2023.
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