SINGAPORE (Aug 3): The manager of EC World REIT has declared a 2Q DPU of 1.54 cents, 4.1% higher than the forecast DPU of 1.48 cents.
EC World Asset Management says this is the third consecutive quarter in which EC World has outperformed its IPO forecast.
Gross revenue for 2Q17 was $23.2 million for the quarter, an increase of $0.5 million or 2.4% compared to the pro-rated forecast. NPI was $21.1 million, an increase of $0.6 million or 2.8% compared to the pro-rated forecast.
The higher NPI was mainly due to additional rental income from the completion of the asset enhancement initiative (construction of a sheltered warehouse) at Chongxian Port Investment, lower property expenses and favorable SGD/RMB exchange rate vis-à-vis forecast assumption.
As at end June, EC World REIT’s committed occupancy continues to stand at 100% while the weighted average underlying end-tenant occupancy1 of the portfolio is 96.4% as at 30 June 2017.
Aggregate leverage remains relatively low at 29.2% providing EC World with available debt headroom for growth and future acquisitions.
In its outlook, the manager says EC World REIT’s portfolio is expected to continue to deliver stable and growing returns for its unitholders. The manager is also actively pursuing and evaluating certain high quality, yield accretive acquisition opportunities in China and in the Southeast Asia region.
Units in EC World REIT closed 1 cent higher at 78 cents.
