REITs have had a good run, yield compression may have come to an end

(Nov 18): Yields on 10-year Singapore Government Securities have been rising, albeit gently from a low base (see Chart 1). Similarly, yields on 10-year US Treasuries are also rising, from a low of 1.4% in September to 1.945% as at Nov 11 (see Chart 2). On Oct 30, the US Federal Reserve, through a statement by the Federal Open Market Committee, announced a 25-basis-point cut in the Fed funds rate to 1.5% to 1.75%.


Accretive acquisition and long WALE keeps EC World REIT at 'buy'

SINGAPORE (May 29): Phillip Capital is keeping its “buy” call on EC World REIT (ECW REIT) with a higher target price of 87.2 cents from 85 cents previously.

This came on the back of the REIT announcing that its 1Q19 earnings have increased by 2.2% y-o-y to 1.501 cents, while distribution to unitholders saw a 3.1% y-o-y increase to $11.9 million.

EC World REIT's positive 1Q earnings and accretive acquisition of Fuzhou E-Commerce keep it at 'buy'

SINGAPORE (May 14): EC World REIT (ECW REIT) on May 10 announced a 2.2% increase in its 1Q19 DPU to 1.501 cents, compared to 1.469 cents in 1Q18.

Distribution to unitholders was $11.9 million, 3.1% higher compared to the same quarter last year.

Gross revenue came in 0.3% lower y-o-y at $23.9 million, bringing net property income (NPI) to $21.2 million, 1.4% lower y-o-y. These were mainly due to exchange rate differences. In RMB terms, the gross revenue and NPI were 3.0% and 1.9% higher respectively compared to same quarter last year.

EC World REIT started at 'buy' by RHB on China's booming e-commerce and logistics sectors

SINGAPORE (Jan 9): RHB Research is initiating a “buy” call on EC World REIT with a target price of 81 cents.

Currently, the REIT has seven logistics assets in China catering to the thriving e-commerce, logistics and supply chain segment that are well-positioned in future growth segments.

In a Tuesday report, analyst Vijay Natarajan says, “As its properties largely cater for domestic consumption, we see minimal impact from the US-China trade war and could potentially benefit from the Government’s push to boost domestic growth.”

EC World REIT posts 9% increase in 3Q DPU to 1.57 cents

SINGAPORE (Nov 7): EC World Asset Management, the manager of EC World REIT, has declared a 3Q18 DPU of to 1.57 cents, 9% higher than the 1.44 cents declared in 3Q17.

Distributable income saw a 10% increase to $12.4 million from $11.3 million a year ago.

During the quarter, gross revenue remained flat at $23.9 million as compared to last year, mainly due to contribution from the REIT’s newly acquired Wuhan Meiluote, but was partially offset by a weaker RMB.

EC World REIT a ‘buy’ on yield compression potential

SINGAPORE (Aug 8): EC World REIT (ECW) reported 2Q18 results that came within expectations of research house SooChow CSSD Capital Markets (Asia).

To recap, ECW’s 2Q18 revenue rose 7.6% y-o-y to $24.9 million while NPI rose 8.2% y-o-y to $22.8 million, driven by contribution from maiden acquisition Wuhan Meiluote.

Distribution income came in 3.1% higher at $12.4 million while DPU of 1.57 cents was 1.9% higher as 1Q18 results incurred withholding tax expenses from cash repatriation.

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