EC World REIT announced Friday its first quarter net property income slipped 1.4 percent on-year to S$21.19 million, mainly on exchange rate differences between the Singapore dollar and the Chinese yuan.
“We are pleased to announce another quarter of resilient financial results, underpinned by our portfolio of stable assets,” Goh Toh Sim, executive director and CEO of the REIT’s manager, said in the statement.
Gross revenue for the quarter ended 31 March edged down 0.3 percent on-year to S$23.86 million, the REIT said in a filing to SGX. In yuan terms, gross revenue and net property income were 3.0 percent and 1.9 percent higher respectively, compared with the year-ago quarter, said the REIT, which specializes in logistics and e-commerce logistics properties in China.
The distribution per unit (DPU) was 1.501 Singapore cents, up 2.2 percent from 1.469 Singapore cents in the year-ago quarter, the filing said. That marked an annualized yield of 8.0 percent, based on the unit closing price of S$0.76 on 31 March, the filing said.
Committed portfolio occupancy was “strong” at 99.97 percent as of end-March, the REIT said.
EC World REIT said it planned to acquire Fuzhou E-Commerce for 1.11 billion yuan, or around S$223.6 million.
“This 100 percent occupied asset is a rare and sizable integrated e-commerce logistics asset strategically situated next to EC World REIT’s existing asset, Fu Heng Warehouse,” it said.
In its outlook, the REIT pointed to China’s continued economic growth in the first quarter, coupled with total retail sales of consumer goods rising 9.3 percent and online retail sales expanding by 15.3 percent.
EC World REIT has a portfolio of seven properties in an e-commerce cluster in the Yangtze River Delta on mainland China.
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