Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is high at 43.58%
- REIT manager's shareholding is slightly low at 0.86%
- Directors of REIT manager's shareholding is high at 43.74%
Lease Profile
- Occupancy is high at 99.1%
- All income is received in RMB
- WALE is short at 3.1 years
- Highest lease expiry within 5 years is high at 74.3% which falls beyond 2024
- Weighted average land lease expiry is short at 36.75 years
Debt Profile
- Gearing ratio is moderate at 38.3%
- Cost of debt is high at 4.1%
- Fixed rate debt % is low at 60.1%
- All debts are secured debts
- WADM is short at 1.4 years
- Highest debt maturity within 5 years is high at 82.9% which falls in 2022
- Interest coverage ratio is low at 2.8 times
Diversification Profile
- Top geographical contribution is high at 98.3%
- Top property contribution is high at 27.2%
- Top 5 properties contribution is high at 87.5%
- Top tenant contribution is high at 36.4%Â
- Top 10 tenants contribution is high at 98.3%Â
Key Financial Metrics
- Property yield is high at 6.6%Â
- Management fees over distribution is low at 11.7% in which unitholders receive S$ 8.55 for every dollar paidÂ
- Distribution on capital is moderate at 3.3%
- Distribution margin is low at 39.5%
Trends
- Flat - Property Yield
- Slight Downtrend - DPU, NAV per Unit
- Downtrend - Interest Coverage Ratio, Distribution on Capital, Distribution Margin
Relative Valuation
- Dividend Yield - Latest 4 quarters DPU @ 5.733 cents / average yield @ 8.11% = S$ 0.705
- Price/NAV - NAV @ S$ 0.91 x average P/NAV @ 0.82 = S$ 0.745
Author's Opinion
 Favorable |  Less Favorable |
---|---|
High REIT Sponsor's Shareholding | All Income in RMB |
High Directors of REIT Manager's Shareholding | Short WALE |
High Occupancy | Concentrated Lease Expiry |
High Property Yield | Short Weighted Average Land Lease Expiry |
Competitive Management Fees | High Cost of Debt |
 | Low Fixed Rate Debt % |
 | 0% Unsecured Debt |
 | Short WADM |
 | Concentrated Debt Maturity |
 | Low Interest Coverage Ratio |
 | High Top Geographical Contribution |
 | High Top Property & Top 5 Properties Contributions |
 | High Top Tenant & Top 10 Tenants Contributions |
 | Low Distribution Margin |
 | Interest Coverage Ratio Downtrend |
 | Distribution on Capital Downtrend |
 | Distribution Margin Downtrend |
ECW performance has improved as compared to the previous quarter partially due to the strengthening of RMB. It has been consecutive 4 quarters for management to retain 10% of distributable income, so moving forward, likely this would be a new norm for ECW.
For more information, you could refer to:
SREITs Dashboard - Detailed information on individual Singapore REIT
SREITs Data - Overview and Detail of Singapore REIT
REIT Analysis - List of previous REIT analysis posts
REIT-TIREMENT Patreon - Support as a Patron and get SREITs Dashboard PDF or Data Excel
REIT-TIREMENT Facebook Page - Support by liking my Facebook Page
REIT Investing Community - Facebook Group where members share and discuss REIT topic
*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions and loss or damage as a result of the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.
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