EC World REIT · SGX:BWCU
EC World REIT — EC World Real Estate Investment Trust — FY2018 Earnings Presentation
21 slides from EC World REIT's earnings presentation, Jan 22, 2019
Slide 1: FY2018 Results Presentation
FY2018 Results Presentation 22 Jan 2019
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 FY18 Key Highlights Section B Financial Review Section C Portfolio Update Section D Proposed Entry into New Master Lease Agreements 2
Slide 4: Section A: FY18 Key Highlights
Section A: FY18 Key Highlights 2/22/2019 3
Slide 5: FY18 Key Highlights
FY18 Key Highlights 1 Strong financial results with 2.6% increase in DPU year-on-year Gross Revenue NPI 4QFY18 DPU DPU Yield (1) S$96.2 million S$87.3 million 1.570 cents 9.0% 5.3% y-o-y 5.6% y-o-y 2 Stable and Resilient Portfolio Performance ✓ Strong committed occupancy is of 99.2% ✓ NPI increa
Slide 6: Consistent Returns to Unitholders
Consistent Returns to Unitholders Distribution to Unitholders DPU SGD’000 Singapore cents 12,024 12,010 12,384 12,414 12,441 11,802 11,562 (1) 11,281 (1) 1.469 (2) 1.570 1.570 1.570 1.541 1.540 1.440 1.504 (2) 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 (1) There
Slide 7: Strong Asset Portfolio Performance
Strong Asset Portfolio Performance Portfolio continues to deliver strong operating performance despite macro uncertainties Gross Revenue (1) Net Property Income (1) RMB million RMB million 115.4 114.6 104.7 106.9 112.4 114.8 100.6 101.5 109.0 108.3 108.9 109.2 98.9 98.0 100.1 95.9 1Q17 2Q17 3Q17 4Q1
Slide 8: Highly Attractive Distribution Yield
Highly Attractive Distribution Yield EC World REIT is one of the highest yielding investment instruments available to investors 9.0% 7.1% 6.6% 3.5% 3.4% 2.1% 0.5% ECW⁽¹⁾ Industrial S- S-REITs⁽²⁾ CPF Ordinary China 10Y Gov Singapore 10Y Bank 12 Months REITs⁽²⁾ Account⁽³⁾ Bond⁽⁴⁾ Gov Bond⁽⁵⁾ Fixed Dep
Slide 9: Stable Portfolio with Augmented Growth Potential
Stable Portfolio with Augmented Growth Potential Portfolio Competitive Advantages ✓ Diversified portfolio comprising port, specialized and e-commerce logistics assets with high income visibility and growth potential ✓ Strategically located in the vibrant cities of Hangzhou and Wuhan with exposure to
Slide 10: Section B: Financial Review
Section B: Financial Review 2/22/2019 9
Slide 11: FY18 Summary Results
FY18 Summary Results Financial Performance Year on Year Variance Quarter on Quarter Variance FY18 FY17 4Q18 4Q17 Comparison (%) Comparison (%) Gross revenue Gross revenue 96,229 91,368 5.3 23,473 20,678 13.5 (S$’000) (S$’000) Net property Net property 87,336 82,704 5.6 20,840 17,945 16.1 income (S$’
Slide 12: 4Q18 Distribution Timetable
4Q18 Distribution Timetable Distribution Timetable : Last Day of Trading on “cum” Basis 15 March 2019 : Ex-date 18 March 2019 : 19 March 2019 Books Closure Date : Distribution Payment Date 29 March 2019 11
Slide 13: Review of Performance between FY18 and FY17
Review of Performance between FY18 and FY17 Net Property Income S$ m 87.3 ▪ NPI increased by 5.6% in FY18 mainly due to (i) contribution from Wuhan Meiluote which was +5.6% acquired in April 2018; (ii) organic growth from 82.7 built-in rental escalation; (iii) positive rental reversion on new leases
Slide 14: Prudent Capital Management
Prudent Capital Management Annualized running interest rate: 4.3% (1) 100% of offshore SGD facilities on fixed rate (2) Entered into FX option contract to lock in SGDRMB for our RMB income source for 1QFY19 distributions. Continues to maintain a rolling 6 month FX hedging strategy Key Debt Fig
Slide 15: Healthy Balance Sheet
Healthy Balance Sheet As at As at S$’000 30 Dec 2018 31 Dec 2017 Cash and cash equivalents(1) 142,127 138,644 Investment Properties 1,335,034 1,337,010 Total Assets 1,515,824 1,511,239 Borrowings 474,705 435,501 Total Liabilities 827,272 793,621 Net Assets attributable to Unitholders 688,552 717,618
Slide 16: Section C: Portfolio Update
Section C: Portfolio Update 2/22/2019 15
Slide 17: Summary Assets Performance
Summary Assets Performance 4Q18 Breakdown by Gross Revenue and NPI (SGD m) FY2018 NPI Yield (1) Total: 23.5 Total: 20.8 8.2% 7.8% 0.5 7.0% 0.4 6.7% 2.4 Portfolio: 6.4% 2.3 5.5% 4.6% 6.0 4.2 4.6% 3.6 3.4 0.4 0.4 2.8 2.5 7.8 7.6 Gross revenue NPI Chongxian Port Investment Chongxian Port Logistics Chon
Slide 18: Section D: Proposed Entry into New Master Lease Agreements
Section D: Proposed Entry into New Master Lease Agreements 2/22/2019 17
Slide 19: Proposed Entry into New Master Lease Agreements
Proposed Entry into New Master Lease Agreements Significantly Enhance Income Viability and Lengthen WALE Existing Master Lease Agreements for Stage 1 Properties of Bei Gang Logistics, Chongxian Port Investment and Fu Heng Warehouse will expire in 2020 Proposed Entry into New Master Lease Agreeme
Slide 20: Proposed Entry into New Master Lease Agreements (cont'd)
Proposed Entry into New Master Lease Agreements (cont’d) Provide Stable Income Stream with Organic Growth WALE to 4.8 Provide predictable cash flow and income viability, ensuring years1 stable and sustainable returns to Unitholders (by Gross Revenue) Limit downside risks and provide predictabi
Slide 21: Thank You
Thank You 2/22/2019 20
EC World Real Estate Investment Trust — FY2018 Earnings Presentation on 6ix