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.
(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: EC World REIT: Attractive FY18E yield of 8.4%
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. |
