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9 Quick Things That Investors Should Know About EC World Real Estate Investment Trust’s Latest Results

EC World Real Estate Investment Trust (SGX: BWCU), or EC World REIT, is the first Chinese specialised logistics and e-commerce logistics REIT that was listed in Singapore in July 2016. The REIT owns properties mainly used for e-commerce, supply-chain management and logistics.

Two weeks ago, the REIT announced its second quarter results for the year ending December 2018. Here, I will look at nine things that investors should know about the latest results:

1. Gross revenue for the reporting quarter came in 7.6% higher year-on-year to S$24.9 million while net property income grew by 8.2% year-on-year to S$22.8 million.

2. Similarly, the REIT’s distribution per unit (DPU) was up by 1.9% year-on-year to 1.57 cents.

3. Based on EC World REIT’s annualised DPU of 6.078 cents and its closing unit price of S$0.69 as of 20 August 2018, the REIT has a trailing distribution yield of 8.8%.

4. As of 30 June 2018, the REIT’s gearing stood at 29.5%, which is a safe distance from the regulatory ceiling of 45%.

5. EC World REIT’s portfolio had a committed occupancy rate of 99.2% at the end of the quarter.

6. The weighted average lease expiry (by gross rental income) was at 2.5 years as of 30 June 2018. Within its portfolio’s leases, 3.6% will expire by 2019, 85.9% will expire in 2020 and the rest after 2020.

7. Segment wise, port logistics, specialised logistics and e-commerce logistics accounted for 46.6%, 15.5% and 37.9%, respectively, of EC World REIT’s latest gross rental income.

8. EC World REIT has the right of first refusal (ROFR) to two properties owned by its sponsor.

9. The following is the latest outlook provided by the REIT:

“Our port logistics assets are located along the largest inland port in Hangzhou which only handles domestic business with no international trade exposure. Similarly, our e-commerce and specialized 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). The Manager is monitoring any currency movement closely and will continue to adopt a proactive FX hedging strategy.”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.