There are things which I like and dislike about this REIT. Some of them I have covered in earlier posts. I would summarise the positives and negatives here. These are my own opinions. Please do your own research before making any buy or sell decisions.
The Positives
Sponsor is the majority stakeholders and current holdings is 41.7%. It is in Sponsor's best interests that the Reit continues to perform well since they own such a huge position.
Low Gearing as at 31 Mar 2017 stood at 28.6%.
NAV as at 31 Mar stood at $0.90. Current closing price as at 21 July was trading at $0.77.
EC World REIT will benefit from the Sponsor’s knowledge in logistics properties, port logistics and fast-growing e-commerce sectors, and its business networks. Even though I am quite wary of China companies, Forchn Holdings Group has been around for some time and having the relevant experience in Logistics Operations in China would be an asset to the growing of EC World Reit.
E-Commerce in China is expected to continue growing strong for the coming years.
E-Commerce in Hangzhou (where EC World Reit's Properties are located) is growing. Hangzhou is also the headquarter of e-commerce giants such as Alibaba.
The construction of a second channel to connect Hangzhou to Northern China will provide further growth. EC World Reit owns 3 ports in Hangzhou.
EC World Reit to expand beyond China?
Positive rental reversion for the 6 Properties are as shown above
Distributable income has been growing. However, do take note: Distributions from EC World REIT to Unitholders will be computed based on 100.0% of EC World REIT's Distributable Income for the period from the Listing Date to 31 December 2017. Thereafter, EC World REIT will distribute at least 90% of its Distributable Income on a semi-annual basis.
To be continued... (Conclusion Tonight)
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