EC World REIT's operations and financials have not suffered any major impact from the Wuhan virus outbreak, according to the REIT Manager.
As the REIT is in the logistics sector catering largely to the e-commerce sector, the REIT is less exposed compared to businesses with operations that rely largely on human traffic. The REIT has a portfolio of eight assets of which one is in Wuhan, China. |
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(L-R): EC World REIT Chairman Zhang Guobiao with CEO Goh Toh Sim. (Mr Zhang is also chairman of the REIT's sponsor, Forchn Holdings Group).
NextInsight file photo.The Manager said it is in regular contact with its property management staff in Wuhan to understand the happenings on the ground.
Currently, there is no significant impact on tenants’ business, it said.
Currently, the majority of the staff of the Manager and the property manager of the REIT’s properties are away for the Chinese New Year holidays.
The Manager, together with the Property Manager and Forchn Holdings Group Co., Ltd., the sponsor of EC World REIT , are taking steps to ensure the safety of their employees and partners.
This includes daily temperature measurement for all staff and vendors entering the premises and advising staff to stay away from crowded places during the Chinese New Year holidays.
In addition, advisories and frequent reminders by the top management has been issued to our staff to remind them of the importance of hand and respiratory hygiene.
The above measures are implemented at the group-level including all of the assets and offices of EC World REIT and the Sponsor.
| EC World REIT has a weighted average lease expiry of 4.3 years by gross rental (as at 30 September 2019) and four out of eight EC World REIT’s assets are under master lease arrangements which provide for fixed rental with built-in escalation. There is no variable rental component under the master lease arrangements. The REIT’s Wuhan asset accounts for less than 2% of EC World REIT’s portfolio net property income. |
Hence, the Manager has not observed any major disruptions to the REIT’s operations and financials. Barring any adverse deterioration in the current situation, the Manager does not expect any material impact on the operations of the REIT.
