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2 REITs That Have Delivered Strong Performances Recently

Real estate investment trusts (REIT) are often prized for its predictable earnings power. In this article, we will look at one REIT, and one property trust that have lived up to their investors’ expectation by delivering positive performance in their latest earnings updates.

1. EC World Real Estate Investment Trust (SGX: BWCU) or EC World REIT reported growth in its 2018 second-quarter earnings report.

As a quick introduction, EC World REIT the only Singapore-listed REIT that owns e-commerce logistics and specialised logistics real estate in China. The REIT that was listed in Singapore on July 2016.

For the quarter ended 30 June 2018, gross revenue came in 7.6% higher year-on-year to S$24.9 million while net property income (NPI) grew by 8.2% year-on-year to S$ 22.8 million. Similarly, the REIT’s distribution per unit (DPU) was up by 1.9% as compared to last year to 1.57 cents. The improvement in financial performance was driven by stronger RMB to SGD conversion rate and revenue contribution from Wuhan Meiluote. As of 30 June 2018, the REIT’s gearing stood at 29.5% and its committed occupancy rate stood at 99.2%.

Mr. Goh Toh Sim, Executive Director and CEO of the Manager, commented on its latest result:

“Despite the uncertainties in the macro environment, we are pleased to report strong results in the second quarter of 2018. This is a testament to the strength and resilience of ECW’s assets portfolio which continues to deliver steady and predictable returns for our unitholders.”

2. Dasin Retail Trust (SGX: CEDU) or DRT also delivered positive results in its latest quarter.

As a quick introduction, DRT is the fashions itself as a China-based retail property trust providing direct exposure to the Pearl River Delta region. Listed in January 2017, DRT’s property portfolio comprises of four retail malls located in Zhongshan City, Guangdong provice, China.

For the quarter ended 30 June 2018, gross revenue for came in came in at S$18.6 million, 65% higher than that of last year. Net property income of S$16.3 million was also 84% stronger than a year ago. Similarly, the REIT’s distribution per unit (DPU) of 1.76 cents was 16% higher than that of last year. The improvement in performance was due to contribution from Shiqi Metro Mall. As of 30 June 2018, the REIT’s gearing stood at 31.5% and its committed occupancy rate stood at 100%.

Mr. Li Wen, CEO of the Trustee-Manager of DRT, commented on its performance:

“We are pleased to report strong operational metrics within the portfolio. Weighted average lease term of 6.38 years by net lettable area and strong full occupancy are a testament to the capabilities of the team. We will continue to enhance our portfolio to provide stable and growing distributions for our unitholders.”

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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.