RHB Group Research has suspended its coverage on EC World REIT on Dec 12. This comes on the back of the ongoing uncertainties surrounding loan refinancing, divestment completion and difficulty in ascertaining its sponsor's financial health, says analyst Vijay Natarajan.
The brokerage’s last published recommendation on the counter was “neutral” with a target price of 55 cents.
On Nov 20, EC World REIT announced that it may face a potential delay in its divestments, causing DBS Group Research to downgrade its recommendation to “fully valued”.
The REIT manager, on Nov 22, said that its board assessed that the REIT “remains as a going concern” after the lenders of its existing offshore bank loans and existing onshore bank loans had asked the REIT to repay the mandatory repayment amount by Dec 31.
On Dec 9, the REIT released a statement responding to investors’ questions ahead of its extraordinary general meeting (EGM), which will take place on Dec 16.
Units in EC World REIT closed 48.5 cents on Dec 12.
