EC WORLD Real Estate Investment Trust’s : BWCU 0%(EC World Reit) calculated distribution per unit (DPU) fell 19.8 per cent to 0.904 Singapore cent for the first quarter ended Mar 31, from 1.127 Singapore cents the year before.
The Reit manager attributed the lower calculated DPU to higher financing cost and lower revenue in its bourse filing on Monday (May 13).
Gross revenue was down 10.1 per cent to S$25.3 million for the quarter, from S$28.1 million in the year-ago period.
Net property income (NPI) dropped 10.6 per cent to S$23.3 million, from S$26.1 million in the same period for FY2023.
The lower revenue and NPI were due to the discontinuation of China Tobacco leases in relation to Hengde Logistics Phase 1, lower rental income from Chongxian Port Logistics, and a weakening of the renminbi against the Singapore dollar, mitigated partly by organic rental escalations, higher late fee income and lower operating expenses at the properties, said the manager.
Distributable income also declined 19.8 per cent year on year to S$8.1 million, from S$10.1 million the year before.
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Average occupancy for EC World Reit’s portfolio dropped to 71.3 per cent as at Q1, down from 96.8 per cent in the same period last year. Of the seven properties in the Reit’s portfolio, only the Stage 1 Properties of Bei Gang Logistics achieved full occupancy.
Weighted average lease to expiry by gross rental income and net lettable area stood at one year and 1.1 years, respectively.
The manager also announced that the Reit was not able to make distribution to unitholders for the H1 2023 period which was to be paid on Sep 28, 2023, due to insufficient funds.
“The payment of the H1 2023 distribution will be deferred to a future date when EC World Reit has sufficient free cash for the distribution,” it said.
There was no distribution announced for H2 2023.
Noting that the ongoing unauthorised mortgages imposed over two of its properties – Fuzhou E-commerce asset and Fuheng Warehouse – have not yet been discharged, the manager said: “EC World Reit will continue to face serious financial stress in the short to medium term while the trading of the units of EC World Reit will continue to be suspended until the financial situation has improved.”
Trading in the units of EC World Reit has been suspended since Aug 31, 2023.
