EC World REIT reported Tuesday its third quarter net property income increased 9.4 percent on-year to S$28.60 million on positive straight-line adjustments and a stronger yuan.
Straight-line adjustment means to calculate rent based on the average over the term of a lease, rather than using potentially variable figures for each month or quarter.
Gross revenue for the July-to-September period increased 10.9 percent on-year to S$31.57 million, the REIT said in a filing to SGX.
In yuan terms, gross revenue was 0.9 percent higher on-year, mainly on organic rental escalations and late fee income, while net property income was 0.9 percent lower on-year for the quarter on higher operating expenses, the REIT said.
The distribution per unit (DPU) rose 19.7 percent on-year to 1.662 Singapore cents, up from 1.388 Singapore cents in the year-ago period, on higher net property income and lower retention of funds available for distribution, the filing said.
For the quarter, EC World REIT will retain 5 percent of the amount available for distribution for withholding tax payment on future profit repatriation, the filing said.
As of end-October, EC World REIT’s occupancy is at 99.2 percent.
EC World REIT’s portfolio has eight properties, with four catering to the e-commerce logistics sector.
The REIT’s manager noted it was approached by Forchn International about possibly acquiring all of EC World REIT’s properties, which could lead to the divestment of the assets.