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How EC World REIT presents attractive opportunities beyond its high yield

Michelle Zhu
Michelle Zhu10/24/2018 09:36 AM GMT+08  • 2 min read
How EC World REIT presents attractive opportunities beyond its high yield
SINGAPORE (Oct 24): RHB Research likes EC World REIT for its strategic market positioning and favourable logistics outlook, post a recent visit to the REIT’s assets in Hangzhou that mainly cater to the e-commerce, logistics and supply-chain segments.
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SINGAPORE (Oct 24): RHB Research likes EC World REIT for its strategic market positioning and favourable logistics outlook, post a recent visit to the REIT’s assets in Hangzhou that mainly cater to the e-commerce, logistics and supply-chain segments.

In an unrated report on Wednesday, analyst Vijay Natarajan highlights that the majority (80%) of EC World REIT’s tenants operate to service these sectors, which have been growing at a fast pace. The REIT’s seven assets in China – six in Hangzhou and one in Wuhan – are valued at $1.4 billion.

In particular, Natarajan notes that three of these assets are on master leases, while almost all leases have rent escalations ranging 1% and 12%, thus providing EC World REIT with organic growth.

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