Why EC World REIT should not be valued like a traditional property trust

SINGAPORE (March 3): Alvin Cheng, deputy CEO of EC World REIT’s manager, thinks the trust is not garnering the market valuations it deserves as it is being compared to other traditional REITs.

Instead, Cheng believes the REIT’s value should be tied more closely to the broader e-commerce logistics space, rather than as a bricks-and-mortar provider.

Since EC World REIT’s listing in July at an IPO price of 81 cents, the market price of its units have dipped 7 cents. That is despite 4Q16 distribution per unit coming in 2% ahead of forecast at 1.463 cents, which puts its annualised yield at 8.15% currently.

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