EC World REIT · SGX:BWCU
EC World REIT — 3QFY2022 Earnings Presentation
21 slides from EC World REIT's earnings presentation, Nov 9, 2022
Slide 1: 3QFY2022 Results Presentation
3QFY2022 Results Presentation 9 November 2022
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumpti
Slide 3: Agenda
Agenda Section A 3QFY2022 Key Highlights Section B Financial Review Section C Portfolio Update Section D Proposed Divestment 2
Slide 4: Section A: 3QFY2022 Key Highlights
Section A: 3QFY2022 Key Highlights 11/9/2022 3
Slide 5: 3QFY2022 Key Highlights
3QFY2022 Key Highlights ▪ Gross revenue and NPI were ▪ High occupancy rate of marginally lower y-o-y, by 5.5% 98.8% as at 30 September and 5.4% to S$29.8 million and 2022 S$27.1 million respectively, ▪ WALE (by gross income) of primarily due to translation effect Asset 1.8 years Financials and from
Slide 6: Distribution Yield
Distribution Yield Attractive Yield Compared to Peers ECW⁽¹⁾ 11.1% 4.8% S-REITs⁽²⁾ 6.3% 4.8% Industrial S-REITs⁽²⁾ 6.3% 8.3% China 10Y Gov Bond⁽³⁾ 2.8% 7.6% Singapore 10Y Gov Bond⁽⁵⁾ 3.5% 8.6% CPF Ordinary Account⁽⁴⁾ 2.5% 10.9% Bank 12 Months Fixed Deposit Rate⁽⁵⁾ 0.2% (1) Based on YTD9M2022 annuali
Slide 7: 3QFY2022 Distribution Timetable
3QFY2022 Distribution Timetable Distribution Timetable : Last Day of Trading on “cum” Basis 5 December 2022 (Monday) : Ex-date 6 December 2022 (Tuesday) : Record Date 7 December 2022 (Wednesday) : Distribution Payment Date (Est) 29 December 2022 (Thursday) 6
Slide 8: Section B: Financial Review
Section B: Financial Review 11/9/2022 7
Slide 9: 3QFY2022 (Year-on-Year) Summary Results
3QFY2022 (Year-on-Year) Summary Results Year-on-Year • Lower gross revenue and NPI due mainly to 3QFY2022 3QFY2021 Variance (%) Comparison absence of income contribution from Fu Zhuo Industrial, lower late fee income and Gross revenue (S$’000) 29,830 31,556 (5.5) the weakening of RMB by 2.4% y-o-y N
Slide 10: 3QFY2022 (Quarter-on-Quarter) Summary Results
3QFY2022 (Quarter-on-Quarter) Summary Results Year-on-Year • Lower gross revenue and NPI q-o-q, mainly 3QFY2022 2QFY2022 Variance (%) due to the weakening of RMB against SGD, Comparison as well as lower late fee income Gross revenue (S$’000) 29,830 31,173 (4.3) • In RMB terms after relevant distribu
Slide 11: 9MFY2022 Summary Results
9MFY2022 Summary Results Year-on-Year • In SGD terms, gross revenue declined by 0.4%, 9MFY2022 9MFY2021 Variance (%) Comparison due mainly to the absence of contribution from Fu Zhuo Industrial, while NPI Gross revenue (S$’000) 93,154 93,545 (0.4) benefitted from lower property expenses, resulting i
Slide 12: Stable Balance Sheet
Stable Balance Sheet As at As at S$’000 30 September 2022 31 December 2021 Cash and cash equivalents(1) 104,254 169,255 Investment Properties(2) 1,108,762 1,673,893 Disposal Group 466,134 - Total Assets 1,702,625 1,895,263 Borrowings 612,421 721,493 Disposal Group 171,300 - Total Liabilities 1,058,0
Slide 13: Capital Management
Capital Management Proactive Capital Management 3QFY2022 Summary ▪ 9MFY2022 and 3QFY2022 running interest rate of 4.6% and 4.8% respectively ▪ Aggregate leverage of 39.3% as at 30 September 2022 ▪ Weighted Average Debt Maturity of 0.70 years ▪ Interest coverage ratio of 2.77x(1) Key Metrics as at 30
Slide 14: Section C: Portfolio Update
Section C: Portfolio Update 11/9/2022 13
Slide 15: Resilient Portfolio with Embedded Organic Growth
Resilient Portfolio with Embedded Organic Growth Healthy Occupancy of 98.8% E-Commerce Logistics Assets Asset Lease Structure Occupancy¹ Key Highlight Master Lease: 1 Jan 2016 to 31 Dec 2024 Coveted property; entire suite of facilities Fu Heng 100% Rental escalation of 2.0% annually from 1st Jan 202
Slide 16: Quality and Differentiated Asset Portfolio
Quality and Differentiated Asset Portfolio Strong portfolio occupancy of 98.8% as at 30 September 2022 Stable income contribution across all sectors Lease Expiry Profile of Portfolio (1) Portfolio Diversification (1) By Net Lettable Area WALE by NLA: 1.6 years WALE by Gross Rental Income: 1.8 ye
Slide 17: Section D: Proposed Divestment
Section D: Proposed Divestment 11/9/2022 16
Slide 18: Proposed Divestment
Proposed Divestment Equity Purchase Agreement Unitholders’ approval to be obtained at EGM (physical format) Divestment Properties to Purchasers1 : EGM Target Date Early December 2022 ▪ Stage 1 Properties of Bei Gang (“Beigang”) Parties to abstain - The Sponsor and each of its ▪ Chongxian Port Logist
Slide 19: Rationale for the Proposed Divestment
Rationale for the Proposed Divestment Enabling debt ▪ Repay the mandatory at least 25% of existing bank loans by 31 financing and December 2022. refinancing in order to avoid breaches of the ▪ Real risk of an imminent default of the repayment obligation due 31 Offshore Undertaking December 2022 if t
Slide 20: Use of divestment proceeds & Pro Forma Financial Effects
Use of divestment proceeds & Pro Forma Financial Effects Intended Use of Divestment Proceeds Pro Forma NAV1 (S$ million) (Cents) Pro Forma NAV Pro Forma NAV per Unit 733.1 90.53 633.0 32.9% 78.16 Before Proposed After Proposed Before Proposed After Proposed Divestment Divestment Divestment Divestmen
Slide 21: Thank You
For queries, please contact: Khoo Li Ching Manager, Investor Relations Tel: +65 6221 9018 khooliching@ecwreit.com www.ecwreit.com Thank You 11/9/2022 20