For 1Q 2018, EC World REIT (ECW) delivered a stable net property income (NPI) of S$21.5 million and distribution per unit (DPU) of 1.469 Singapore cents.

(S$’000)

1Q2018

1Q2017

Change

Gross revenue

23,939

23,663

1.2%

Net property income

21,490

21,601

(0.5%)

Distributable income

11,562

12,024

(3.8%)

Adj. distributable income without WHT

12,353

12,024

2.7%

DPU (cents)

1.469

1.541

(4.7%)

Adj. DPU without WHT (cents)

1.570

1.541

1.9%

*WHT: withholding tax

The DPU was 4.7% lower y-o-y mainly due to a 5% withholding tax incurred due to cash repatriation in March 2018.

No further cash repatriation is currently planned for the rest of FY2018.

Without the withholding tax, distributable income and DPU would have been S$12.4 million and 1.570 Singapore cents, which would be 2.7% and 1.9% higher than 1Q 2017 respectively.

ECworld mgt3.18(L-R): CEO Goh Toh Sim | CFO Johnnie Tng | Head Investment, Asset Management and Investor Relations Jinbo Li.  NextInsight file photo.On an annualised basis (ie 1Q actual DPU + 3x adjusted DPU), the yield is 8.35%, based on the REIT's recent traded price of 74 cents.

This is in line with a recent analyst report: 


Mr. Goh Toh Sim, Executive Director and CEO of the Manager, said, “Our asset portfolio continues to deliver consistent returns and attractive DPU yield for our unitholders.

"We also pleased to have completed our first acquisition of a high quality e-commerce warehouse in Wuhan and will continue to work hard to secure more yield accretive acquisitions to expand our portfolio.”


Stable Portfolio Performance

For 1Q 2018, gross revenue amounted to S$23.9 million, a 1.2% increase y-o-y. NPI was S$21.5 million, a drop of 0.5% y-o-y primarily due to higher property maintenance and repair expenses.

The committed portfolio occupancy stayed at 100% while the weighted average underlying end-tenant occupancy of the portfolio was 97.5% as at 31 March 2018.

As at 31 March 2018, ECW’s aggregate leverage remains relatively low at 28.9% providing EC World REIT with ample debt headroom for growth and future acquisitions. The blended annualized running interest rate for the REIT's loans was 4.5%.

Acquisition Update

The acquisition of an e-commerce logistics asset in Wuhan (Wuhan Meiluote) for RMB145 million was completed on 16 April 2018. 

Wuhan Meiluote is a high specification warehouse anchored by two top tier Chinese e-commerce players, Jingdong and Dang Dang, and is strategically located near major expressways in western part of Wuhan, a key transportation node in central China. 

ECW’s maiden acquisition reinforces its unique proposition as a specialized e-commerce logistics platform, and it is expected to be DPU accretive.

The Manager continues to source for yield-accretive acquisitions in China and in key high growth markets in Southeast Asia along the Belt and Road corridor. 

As jointly announced by Forchn Holdings and YCH Group on 24 April 2018, a portfolio of 13 logistics assets currently owned by YCH Group will be made available for ECW’s consideration for acquisition subject to due diligence, commercial negotiation and customary regulatory approvals.

 


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