Key Updates from EC World REIT’s AGM on 09 June 2020 (Guest Post)

Key Updates from EC World REIT’s AGM on 09 June 2020 (Guest Post)

EC World REIT conducted its virtual annual general meeting this morning (09 June 2020) at 10.00am, and as a unitholder, I have attended the meeting to learn about the latest developments from the top management.

EC World Reit taps market for $630m, Companies & Markets News ...

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1170  followers.

EC World REIT conducted its virtual annual general meeting this morning (09 June 2020) at 10.00am, and as a unitholder, I have attended the meeting to learn about the latest developments from the top management.

The meeting was a short and simple one, lasting approximately 30 minutes, and in this post, you will find key updates of the presentation by Mr Goh Toh Sim, Executive Director and CEO:

Navigating the Covid-19 Pandemic:

    • Business operations in China were strained as a result of the two-month shutdown in the country to contain the spread of Covid-19.
    • However, as at 31 March 2020, tenants in all of EC World REIT’s assets have resumed operations, and business activities in China have largely resumed.

FY2019 – Key Highlights:

    • Gross revenue increased by 3.0% on a year-on-year (y-o-y) basis to S$99.1m.
    • Distribution Per Unit for the financial year 2019 was 6.047 Singapore cents/unit (and this constitutes 98.7% of the income available for distribution to unitholders.)
    • Portfolio valuation went up by 20.6% to RMB8,118m, largely due to the REIT’s acquisition of Fuzhou E-commerce (which is operated by leading omni-channel logistics service provider Ruyicang.)

Q1 FY2020 – Key Highlights:

    • Gross revenue saw a 1.4% y-o-y decline to S$23.5m mainly due to recognition of rental rebates (amounting to RMB23.7m to tenants within its portfolio to help them mitigate the adverse impact of Covid-19), mitigated by the full quarter contribution from the newly acquired Fuzhou E-Commerce.
    • Distribution Per Unit for the quarter under review was 1.158 Singapore cents/unit, with 5% of the amount available for distribution retained for prudence and financial fluidity.

 

    • In terms of debt profile as at the end of Q1 FY2020:
        • Aggregate leverage: 38.6% (well within the new MAS limit of 50%)
        • All-in running interest rate: 4.3%
        • Weighted average term of debt expiry: 2.37 years
    • The REIT’s portfolio occupancy profile as at the end of Q1 FY2020 is as follows:
        • Portfolio occupancy: 99.1%
        • 49.7% of the REIT’s portfolio (by net lettable area) consists of E-Commerce logistics (which Mr Goh updated was up from around 36% at IPO); On top of that, Mr Goh also shared that EC World REIT is the only S-REIT offering substantial access to the e-commerce logistics business
        • Weighted average lease expiry by net lettable area was 3.0 years, from the renewal of master leases, and from Fuzhou E-Commerce
        • In the remaining quarters ahead, the Manager will embark at selective enhancement work to maintain and improve the quality of assets in the REIT’s portfolio

Related Documents:

Disclaimer: At the time of writing, I am a unitholder of EC World REIT.
$EC World Reit(BWCU.SI)

Once again, this article is a guest post and was originally posted on ljunyuans profile on InvestingNote. 

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