EC-World REIT’s distribution per unit in 3QFY2019 fell 5.2% y-o-y and 3.7% q-o-q to 1.489 cents because the REIT took on additional debt to acquire Fuzhou E-Commerce (which had yet to contribute to NPI), and the RMB was soft. In 3QFY2019, net property income rose 3.2%, but finance cost surged by 35.4%. Hence distributable income fell 4.4% to $11.9 million during the third quarter. Net asset value fell to 84 cents as at Sept 30, from 87 cents as at Dec 31 2018.
(Dec 13): Two real estate investment trusts with Chinese properties outperformed the sector since the start of Dec, Sasseur REIT and EC-World REIT.
Sasseur REIT owns four outlet malls, one each in Chongqing, Bishan, Hefei and Kunming. It rose 5.8% in a matter of days, probably in anticipation of Dec 23. On Dec 6, Sasseur REIT’s manager announced that the REIT would be included in the FTSE EPRA Nareit Global Emerging Index from Dec 23 onwards. Separately, Sasseur REIT’s manager has been on a spate of roadshows to meet investors.
