EC World Reit *Official* (SGX: BWCU)

Jupiter2017

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http://www.businesstimes.com.sg/com...ger-quits-board-says-new-candidate-identified
CEO of EC World Reit's manager quits; board says new candidate identified
Mon, Feb 12, 2018 - 7:44 AM Vivien Shiao vshiao@sph.com.sg

EC World Asset Management, manager of EC World Reit, announced that executive director and CEO of the manager Alvin Cheng has resigned to pursue other professional interests.
Mr Cheng joined the manager in January 2017, firstly as executive director & deputy CEO, and was promoted to executive director & CEO in May 2017.
In a filing with the Singapore Exchange on Feb 9, the Reit manager said that Mr Cheng has contributed to the strengthening of the organisation structure as well as the growth plan of EC World Reit.
The board said that it has identified a candidate to act as the CEO and will make the relevant announcements once the necessary regulatory approval has been obtained.

price link: http://www.shareinvestor.com/fundamental/factsheet.html?counter=BWCU.SI
 

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Never mind the coronavirus, EC World REIT should 'perform as expected': KGI

Never mind the coronavirus, EC World REIT should 'perform as expected': KGI

https://www.theedgesingapore.com/ca...rus-ec-world-reit-should-perform-expected-kgi

SINGAPORE (March 2): Despite the outbreak of the novel coronavirus in China, KGI Securities continues to rate EC World REIT as “outperform”, albeit with a lower target price of 82 cents from 84 cents, previously.

The brokerage says it is “confident” that most of the REIT’s e-commerce assets in China will “perform as expected”.

The full-year contribution of Fuzhou E-Commerce is also expected to offset any potential decreases in revenue from its other assets, it adds.

“To date, Wuhan Meiluote is the only asset that has not yet received the green light to resume operations,” KGI analyst Amirah Yusoff writes in a note dated March 2.

“Outside of Hubei, Wuhan, management has conveyed that the virus spread is somewhat under control, and business is slowly normalising,” she adds.

Still, KGI has reduced its forecasts for EC World REIT given its view of potential stagflation in China.

It notes that the temporary closures of warehouses and factories will inevitably affect Chinese businesses, which will have a direct impact on one-to-two months of cash flows.

KGI says it has factored in the possibility of EC World REIT providing up to a month of rental rebates, especially for its port logistics assets.

As at 3.22 pm, EC World REIT was unchanged at 70.5 cents, with some 1.3 million units changed hands.
 

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It’s a 'buy' for EC World REIT on resumed operations for tenants

It’s a 'buy' for EC World REIT on resumed operations for tenants

https://www.theedgesingapore.com/ne...-buy-ec-world-reit-resumed-operations-tenants

SINGAPORE (May 18): Following China’s easing of lockdown measures in March, it’s almost back to business for EC World REIT’s tenants.

On the back of that, DBS analysts Dale Lai and Derek Tan, RHB analyst Vijay Natarajan, and KGI analyst Amirah Yusoff, have maintained their “buy”, or “outperform” calls on the REIT, citing its stable portfolio of master leases in the logistics sector.

However, both RHB’s Natarajan and KGI’s Yusoff have trimmed their target price on EC World REIT: from 78 cents to 76 cents, and from 82 to 73 cents, respectively. DBS’s Lai and Tan, meanwhile, have maintained their target price at 80 cents.

Expectations on the REIT, however, are lowered to reflect the disruption operations caused by Covid-19, and the RMB23.7 million (S$47.5 million) worth of rental rebates that were given to EC World REIT’s tenants.

On Tuesday, May 12, EC World REIT reported a 22.9% y-o-y decline in distribution per unit (DPU) to 1.158 cents for 1Q20. Gross revenue dipped slightly at 1.4% y-o-y to $23.5 million. Net property income (NPI) also fell slightly 0.2% y-o-y to $21.1 million.

“Despite the weaker performance in 1Q20 due to the rental rebates, we expect ECW to report strong earnings for the rest of FY20,” say DBS’s Lai and Tan, who have assumed “slightly lower occupancy rates and flat rental reversions for its multi-tenanted properties”.

The full year contribution from Fuzhou E-Commerce and rental escalations for master leases is also expected to mitigate the REIT’s lacklustre earnings.

“We continue to like EC World REIT for its stable portfolio metrics and long WALE that provides earnings visibility. Since the easing of COVID-19 containment measures in March 2020, tenant operations have ramped up very quickly and are mostly back to normal,” say Lai and Tan.

RHB’s Natarajan believes that “The REIT’s pure-play exposure to the logistics segment, and long master leases, as well as the gradual recovery of the China market puts it in a relatively good position”.

“Valuations are reasonably attractive, at 0.8x price per book value,” he says, trimming EC World REIT’s FY20-22 forecast DPU by 10%, 5%, and 5% respectively, to reflect rental rebates given for FY20, lower rental growth, and the payment of management fees in cash.

KGI’s Yusoff remains “optimistic but conservative” on the REIT due to the slow macro outlook in China. “We have factored a slower reversion rate and a slightly higher cost of capital into our valuations due to the uncertainties relating to China’s economy,” she says. “Our revised TP represents a total upside of 17.2% (incl. FY20F div. yield of 8.1%)”.

As at 10.20am, EC World REIT was trading at 67.5 cents, unchanged thus far today.
 

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Chief investment officer of manager of EC World REIT under CAD and MAS probe

Chief investment officer of manager of EC World REIT under CAD and MAS probe

https://www.theedgesingapore.com/ne...t-officer-manager-ec-world-reit-under-cad-and

SINGAPORE (July 2): The chief investment officer of the manager of EC World REIT (ECW REIT), Li Jinbo, is under probe by the Commercial Affairs Department (CAD) and the Monetary Authority of Singapore (MAS).

Li received a letter on June 30 to provide certain information, documents, and electronic devices in relation to an offence under the Securities and Futures Act (Chapter 289).

Li has been interviewed by the CAD in connection with the investigation.

According to a statement by EC World REIT, the Nominating and Remuneration Committee of the manager has accepted Li’s request for leave of absence pending outcome of the matter and will review his appointment when there is sufficient information available.

CAD indicates that EC World REIT and the manager of the REIT are not under investigation.

Units in EC World REIT closed 0.5 cent lower, or 0.7% down, at 66.5 cents.
 

Andrew833

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Chief investment officer of manager of EC World REIT under CAD and MAS probe

https://www.theedgesingapore.com/ne...t-officer-manager-ec-world-reit-under-cad-and

SINGAPORE (July 2): The chief investment officer of the manager of EC World REIT (ECW REIT), Li Jinbo, is under probe by the Commercial Affairs Department (CAD) and the Monetary Authority of Singapore (MAS).

Li received a letter on June 30 to provide certain information, documents, and electronic devices in relation to an offence under the Securities and Futures Act (Chapter 289).

Li has been interviewed by the CAD in connection with the investigation.

According to a statement by EC World REIT, the Nominating and Remuneration Committee of the manager has accepted Li’s request for leave of absence pending outcome of the matter and will review his appointment when there is sufficient information available.

CAD indicates that EC World REIT and the manager of the REIT are not under investigation.

Units in EC World REIT closed 0.5 cent lower, or 0.7% down, at 66.5 cents.

Today dive sharply, gg liao
 

Andrew833

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Isn’t it a good time for those with ball of steel to buy?

The fact the price drop also imply there are still people buying.

There always have ppl buying, that’s why trade is completed.
I don’t go for high risk. Just stay at the sideline watching.
 

Shion

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CIO of EC World Reit's manager quits following CAD interview

CIO of EC World Reit's manager quits following CAD interview

https://www.straitstimes.com/busine...d-reits-manager-quits-following-cad-interview

SINGAPORE (THE BUSINESS TIMES) - The chief investment officer (CIO) of the manager of EC World Real Estate Investment Trust (EC World Reit), Li Jinbo, left his position on Friday (July 17) to take up a new job, the manager said in a bourse filing late that day.

Earlier this month, Mr Li was called up for an interview by the Commercial Affairs Department (CAD) in connection with an investigation into an offence under the Securities and Futures Act. CAD indicated that EC World Reit and its manager were not under investigation.

The Reit's manager said then that Mr Li, 35, had been put on a leave of absence at his request, pending the outcome of "the matter", and that its nominating and remuneration committee would review his appointment when there was sufficient information made available to the manager.

It added that the Reit's business and operations have not been affected by Mr Li's leave of absence, as chief executive Goh Toh Sim had been overseeing the investment and asset management functions of the manager and EC World Reit since the latter's initial public offering.

In its filing on Friday, the manager indicated there was no matter in relation to Mr Li's cessation as CIO that needed to be brought to the attention of EC World Reit unitholders.

Mr Li, who served as CIO from August 16, 2018, holds 32,860 units of EC World Reit.

The counter ended Friday at 64.5 cents, up one cent or 1.6 per cent, before the announcement.
 

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EC World Reit’s Q2 DPU down 10.4% on income conservation

EC World Reit’s Q2 DPU down 10.4% on income conservation

https://www.businesstimes.com.sg/co...reit’s-q2-dpu-down-104-on-income-conservation

EC World Reit, commonly seen as a proxy to China’s e-commerce logistics growth, posted a distribution per unit (DPU) of 1.386 Singapore cents for Q2 ended June, down 10.4 per cent from a year ago on income retention amid a cautious outlook.

Gross revenue for Q2 was up 18.8 per cent to S$28.2 million, while net property income (NPI) rose 22.1 per cent to S$25.8 million. This was mainly driven by contributions from the Fuzhou E-commerce property, which was acquired in August 2019, coupled with organic rental escalations.

Operations of EC World Reit’s tenants, as well as underlying operations at the master leases have resumed. As at end-June, the real estate investment trust (Reit) had a portfolio occupancy rate of 98.7 per cent, with a weighted average lease to expiry of 3.6 years, by gross rental income.

However, Q2 finance costs also rose by 39.6 per cent to S$9.8 million, due to a higher term loan quantum compared to a year ago.

The Reit’s total amount for distribution rose 0.5 per cent to S$12.4 million. However, EC World Reit decided to retain 10 per cent of the amount, due to the uncertainties of the Covid-19 pandemic.

For H1, EC World Reit posted a 16.5 per cent drop in DPU to 2.544 Singapore cents. This came even as gross revenue was up by 8.7 per cent to S$51.7 million, while NPI rose 10.9 per cent to S$47 million.

Goh Toh Sim, chief executive of the Reit’s manager, said: “While the China economy expanded 3.2 per cent in the second quarter of 2020, headwinds persist. Businesses remain cautious in their leasing and expansion plans amidst the uncertain geopolitical and economic climate.”

“ECW’s portfolio of eight assets has a healthy weighted average lease expiry of 3.6 years, and its master lease agreements with embedded rental escalation provides organic growth within the portfolio. We will continue to work closely with the property manager in China to optimise portfolio performance.”

Units of EC World Reit closed at S$0.64 on Friday, up 0.79 per cent ahead of the results.
 

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EC World REIT to see stronger 2H20, chance of e-commerce acquisitions: RHB

EC World REIT to see stronger 2H20, chance of e-commerce acquisitions: RHB

https://www.theedgesingapore.com/ca...onger-2h20-chance-e-commerce-acquisitions-rhb

EC World REIT is expecting a gradual resumption of normal operations across all its assets and increased demand for e-commerce logistics assets post-Covid-19. As such, RHB analyst Vijay Natarajan is maintaining “buy” on the REIT with an increased target price of 76 cents.

Barring one-off rebates and retention, 2H2020 should be stronger, says Natarajan. 2Q2020 distributable income rose 0.5% y-o-y, mainly due to the contribution from Fuzhou E-Commerce, which the REIT acquired in August 2019.

“Distributable income rose 26.4% q-o-q on the absence of one-off rental rebates given in 1Q2020. EC World REIT retained 10% of distributable income during the quarter, in light of uncertainties. We expect 2H2020 DPU to increase by 10% h-o-h, with the absence of rental rebates and steady contributions from master leases and other assets,” he writes in an August 12 note.

EC World REIT was established with the strategy of investing principally in a diversified portfolio of income-producing real estate. The latter assets are used primarily for e-commerce, supply-chain management, and logistics purposes. The REIT also focuses on real estate-related assets. The initial geographical focus is the People’s Republic of China.

On July 2, EC World REIT announced that its then-CIO Li Jinbo was under investigation by the Commercial Affairs Department and the Monetary Authority of Singapore. It confirmed that the investigation was conducted at the personnel level and has no implications on the REIT. Li has since left the firm.

Natarajan expects a majority of 2H2020 leases to be renewed. About 13% of leases by gross rental income are due for renewal in 2H2020, with the majority coming from the expiry of leases at Hengde Logistics.

Management noted the good progress on ongoing discussions with underlying tenant China Tobacco Zhejiang Industrial and expects the tenant to stay. However, due to the challenging market conditions, it does not expect any rental uplift from the asset.

The other lease expiries are for Chongxian Port Logistics, for which it still sees good demand – but weakness is expected in Wuhan Meiluote (WML), located in the city most impacted by Covid-19, though WML accounts for less than 2% of net profits interest.

On e-commerce, asset acquisitions are likely in 2021, says Natarajan. While EC World REIT’s focus in 2H2020 will be on operations, it also sees the possibility of acquiring some e-commerce and other logistics assets from its sponsor.

While China will remain its key market, it has also started to explore Australia and Europe for potential opportunities. The REIT manager reiterated that DPU and yield accretion will be the key criteria for any acquisition.

Gearing is at a modest 39.1%, well below the new 50% cap. There will be no refinancing needed until 2022. EC World REIT’s combination of onshore (33%) and offshore debt (66%) facilities are only due for refinancing in Jun 2022. 100% of onshore facilities are fixed. The REIT also manages foreign exchange (FX) risks by using FX options to lock in 6-month forward income.

As at 10.51am, units in EC World REIT are trading at 0.5 cents lower, or 0.76% down, at 65 cents.
 

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This S-REIT offers 8.3% forward yield for less than $1

This S-REIT offers 8.3% forward yield for less than $1

https://www.theedgesingapore.com/capital/brokers-calls/s-reit-offers-83-forward-yield-less-1

In terms of providing strong dividends at low prices, S-REITs are proving themselves to be the gift that keeps on giving. Despite offering lower DPU in FY2020 ending September due to rental rebates and retention of 10% distributional income, EC World REIT is currently offering an 8.3% forward dividend yield at a P/NAV multiple of just 0.8 times in FY2021.

To be sure, EC World REIT has erred on the side of prudence by retaining 10% of distributable income in the face of the Covid-19 threat. But Dale Lai and Derek Tan of DBS Group Research believe that the REIT’s payout ratio for FY2021 will come in at 95% as it continues to retain distributional income till at least 2HFY2021. They have maintained a “buy” call on the counter for a target price of $0.80.

“As we do not anticipate any further rent rebates arising from the COVID-19 pandemic too, the return to full income distribution and potentially the return of some of the earlier retained income will be a positive surprise to FY21 DPU,” they share in a Feb 24 broker’s report. The counter’s 0.8 P/NAV ratio suggests that this strong yield is available at a bargain.

But EC World REIT is not just the stuff of value investor’s dreams - it could potentially be a lucrative growth play too. The first specialised and e-commerce logistics REIT listed on the SGX, it owns a portfolio of quality real estate in China. These are based in one of the largest e-commerce clusters of Hangzhou in the Yangtze River Delta and Wuhan.

“We continue to like EC World REIT given its exposure to the fast-growing e-commerce and logistics sector in China,” says the DBS duo. Half of the REIT’s assets are e-commerce logistics; the other half is split almost equally between port logistics and specialised logistics.

Better yet, investors can rest easy about income stability. Around three-quarters of EC World REIT’s portfolio leases are on master lease with built-in rent escalation. These, say Lai and Tan, will support organic growth in its portfolio, despite it suffering a 1.2% valuation setback due to declining valuations of Hengde Logistics and Bei Gang Logistics Phase 1.

In terms of occupancy, the REIT reports a 4QFY2020 occupancy of 99.3% - a 2.6% q-o-q improvement despite the growing prevalence of remote working. The higher occupancy has seen 4QFY2020 net property income rising by 4.1% q-o-q. Only 15.8% of portfolio leases are due to expire in FY2021, even though rent renewals in FY2021 are seen to be relatively flat.

“We understand that management will be aiming to sign short-term leases for renewals as market rents are relatively weak currently and do not reflect the true potential rents of the properties,” say the DBS analysts. They note that EC World REIT intends to recommence signing longer leases when rents have stabilised.

EC World REIT’s balance sheets have improved on the back of low rates, with FY2020 gearing improving 0.6% y-o-y to 38.1%. All-in borrowing costs improved slightly from 4.5% in FY2019 to 4.3% in FY2020. Lai and Tan see further saving in borrowing costs ahead due to present low interest rates, with significant savings expected for FY2022 as one of the REIT’s larger loans mature.

As of 2.56pm, EC World REIT is trading flat at $0.72. It offers a 7.39% dividend yield and has a P/E of 12.26.
 

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Worst is over for EC World REIT now that Wuhan’s back in business: DBS

Worst is over for EC World REIT now that Wuhan’s back in business: DBS

https://www.theedgesingapore.com/ca...r-ec-world-reit-now-wuhan’s-back-business-dbs

DBS Group Research analysts Dale Lai and Derek Tan have maintained their ‘buy’ rating on EC World REIT with an unchanged target price of 80 cents.

While rental rebates and retention of distributable income in light of Covid-19 impacted the REIT’s FY2020 performance with a lower than expected distribution per unit (DPU) of 5.36 cents, Lai and Tan note that portfolio occupancy has rebounded as of 4QFY2020.

‘During the quarter, EC World REIT successfully backfilled vacancies at the Wuhan Meiluote property (86.5% vs. 35.0%), and we believe that the REIT will be able to continue leasing out available space at the property and sustain its strong overall portfolio occupancy rate of 99.3%,” they explain.

15% of EC World REIT’s leases are up for expiry in 2021. Lai and Tan believe that built-in rental escalations on the remaining 75% of master leases provide income visibility while also enabling organic growth in earnings. They expect renewals in FY2021 to remain relatively flat.

“We understand that management will be aiming to sign short-term leases for renewals as market rents are relatively weak currently and do not reflect the true potential rents of the properties,” they add.

The analysts continue to like EC World REIT given its exposure to the fast-growing e-commerce and logistics sector in China, with 50% of its assets in e-commerce logistics, 25% in port logistics, and 25% in specialised logistics.

Lai and Tan are projecting a 12% rebound in FY2021 DPU, implying an attractive forward yield of 8.3%. They also anticipate a higher payout ratio of 95% of the REIT.

“As we do not anticipate any further rent rebates arising from the COVID-19 pandemic too, the return to full income distribution and potentially the return of some of the earlier retained income will be a positive surprise to FY2021 DPU,” they add.

Their target price of 80 cents is based on DCF with an assumed discount rate of 8.1% (risk-free rate of 3.0%). It assumes a target yield of 7.5% and a P/NAV of 0.9 times.

Shares in EC World REIT closed 0.5 cents or 0.6% lower at 73 cents on March 4.
 
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