Tenants Diversity
The majority of the leases have positive rental escalation as shown below.
Long land tenure expiry.
The market valuation as at 31 Dec 2016 (appraised by Colliers) for all the properties are also more than purchase consideration values.
Will EC World acquire these 2 new Properties?
The existing properties are shown as below.
Screenshot from AGM Presentation
NAV as at 31 Dec 2016 is $0.93. Gearing is 27.6%.
Outlook for e-commerce in China
EC World REIT's price as at 28 April was $0.76. The current price is below the NAV of $0.93. With the low gearing of 27.6%, more acquisitions could be seen in the near future. In fact, they should do so as to stagger their lease expiry. I am uncomfortable with their current lease expiry profile as seen in Part 1 of my post. For investors interested in this Reit, do take note that ECW’s distributions policy is to distribute 100.0% of
ECW’s Distributable Income for the period from the Listing Date to 31 December 2017. Thereafter, ECW will distribute
at least 90% of its Distributable Income on a semi-annual basis.
The Sponsor has a 41.4% stake in ECW. With such a huge stake, their interests should be aligned with shareholders. It is in their best interests that the Reit performs well.
Screenshot from SGX website
This Reit does look interesting. My main concern is the lease expiry for FY2020. I will definitely be watching this Reit. 😀
Very good and informative list for EC world reit.
ReplyDeleteThanks for the support!
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