EC World REIT net property income fell 7 percent in 2Q19 amid weaker yuan

EC World REIT's Stage 1 of Bei Gang Logistics, which comprises eight buildings, located in North Hangzhou, China. It is one of the largest e-commerce developments in the Yangtze River Delta. Credit: EC World REITEC World REIT's Stage 1 of Bei Gang Logistics, which comprises eight buildings, located in North Hangzhou, China. It is one of the largest e-commerce developments in the Yangtze River Delta. Credit: EC World REIT

EC World REIT reported Tuesday its second quarter net property income fell 7.2 percent on-year to S$21.16 million as the Chinese yuan weakened against the Singapore dollar.

Gross revenue for the quarter ended 30 June fell 4.8 percent on-year to S$23.73 million, the REIT said in a filing to SGX.

In yuan terms, adjusted gross revenue was up 3.6 percent on-year for the quarter at 118.9 million yuan, while net property income rose 3.4 percent on-year to 108.2 million yuan, the REIT said.

The distribution per unit (DPU) was 1.547 Singapore cents for the quarter, down 1.5 percent from 1.57 Singapore cents in the year-ago period, the filing said.

“We are pleased to continue to deliver stable DPU for our unitholders despite the heightened macroeconomic tensions,” Goh Toh Sim, executive director and CEO of the REIT’s manager, said in the statement.

“Driven by the continued demand for quality logistics assets in China and its highly defensive lease structures, EC World REIT’s portfolio remains well-positioned to deliver organic growth and stable performance,” Goh said.

Portfolio occupancy remained strong at 99.1 percent, the REIT said.

For the first half, EC World REIT reported net property income fell 4.4 percent on-year to S$42.34 million on gross revenue of S$47.59 million, down 2.6 percent on-year. DPU for the first half was 3.048 Singapore cents, up 0.3 percent from 3.039 Singapore cents in the year-ago period, the filing said.

EC World REIT is a specialized logistics and e-commerce logistics REIT with seven properties located mainly in the Yangtze River Delta.

While you’re here, we’re hoping you can help us out.

Shenton Wire has been providing you with quick news and market analysis. But we need your support to continue to bring you the news you’ve come to expect and to expand our reach beyond Singapore.

Your monthly contribution will directly fund our journalism.

S$2     S$4       S$8

S$18       S$28       S$88

You can check your existing account here. You can also contact us about other contribution levels or for corporate subscriptions and syndication queries.