The manager of EC World REIT reported a distribution per unit (DPU) of 1.53 cents for the 1QFY2021 ended March, up 32.3% y-o-y from 1.16 cents previously.
Total amount available for distribution for the period was $13.7 million, up 40.3% y-o-y from $9.8 million. In its quarterly update on May 11, the manager states that 10% ($1.4 million) of the amount available for distribution was retained "in view of uncertainties arising from the prolonged Covid-19 pandemic and for general working capital purpose”. To that end, distribution to unitholders amounted to $12.4 million, up 32.9% y-o-y.
The higher distribution follows higher revenue and net property income (NPI) for the period, both of which grew 30.9% y-o-y to $30.8 millon and $23.5 million respectively. The manager attributes the increased revenue and NPI to the absence of rental rebates given to tenants due to Covid-19 as well as the strengthening of the RMB by 3.5% y-o-y.
Unitholders will receive distributions on June 29.
Cash and cash equivalents stood at $160 million as at March 31, compared to $151.7 million as at Dec 31, 2020. EC World REIT’s aggregate leverage was 38.3% with a blended running interest rate of 4.1% for 1QFY21 and a weighted average debt maturity of 1.4 years.
SEE:EC World REIT renews second major lease in relation to Hengde Logistics
The REIT’s portfolio occupancy stood at 99.1% as at March 31. The manager highlighted that in May, it secured renewal of a major lease at Hengde Logistics extending weighted average lease to expiry (WALE) by gross rental income to 3.2 years from 3.1 years as at March 31.
Looking ahead, the manager notes that the renewal of the lease at Hengde Logistics provides stability to the REIT, while its properties with master leases and embedded rental escalation will provide organic growth to the portfolio.
“The manager will continue on its mission to provide unitholders with a stream of sustainable returns,” says Goh Toh Sim, executive director and CEO of the manager.
Goh also highlighted the REIT's recent announcement on the displacement and collapse of a berth at Chongxian Port Investment. “The cause of the incident is under investigation. The manager is working closely with the insurer to assess the quantum of revenue loss and property damage recoverable by insurance claims,” he says.
Units in EC World REIT closed flat at 73.5 cents on May 11.
