EC World REIT 2Q 2020 DPU Up 19.7%

August 11, 2020 — EC World Asset Management Pte. Ltd., as manager of EC World Real Estate Investment Trust (ECW), reported a set of improved financial results in view of the recovering China economy. On a year- on-year comparison, DPU declined 10.4% in 2QFY20 due to a 10% retention of total amount available for distribution in view of the uncertainties arising from COVID-19. DPU grew 19.7% to 1.386 cents compared to 1QFY20 as a result of the recognition of one-off rental rebates to tenants in 1QFY20.

Mr. Goh Toh Sim, Executive Director and CEO of the Manager, said, “While the China economy expanded 3.2% 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 optimize portfolio performance.

As part of the Manager’s prudent approach towards cash management, ECW had retained 10% of total amount available for distribution in 2QFY20 in view of uncertainties arising from COVID-19.”

In 2QFY20, operations of ECW’s tenants and its underlying operations at the master leases have resumed. As at 30 June 2020, ECW has a portfolio occupancy rate of 98.7% with a weighted average lease to expiry of 3.6 years (by gross rental income).

Gross revenue and NPI grew by 19.8% and 22.2% in 2QFY20 compared to 1QFY20 mainly due to absence of one-off rental rebates recognized in 1QFY20. On a year-on- year comparison, gross revenue and net property income grew by 18.8% and 22.1% attributed to the contribution from Fuzhou E-commerce which was acquired in August 2019 and organic growth from rental escalations.

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