Note: Trading of EC World REIT’s units remains suspended since 31 August 2023, due to the lack of funds to meet its interest obligations.

Listed on the Singapore Exchange since July 2016, EC World REIT (SGX: BWCU) is a China-based e-commerce and port logistics REIT, with its portfolio currently comprising of 7 properties located in the country.

The REIT remains in a financial distress, and since the release of its 2Q and 1H FY2025 results back in mid-August (you can read my review about it here), there are no new material developments to highlight.

Earlier this evening (13 November), it released its financial results for the 3rd quarter, as well as for the first 9 months of FY2025 ended 30 September, and in this post, you’ll find my review of its latest financial figures, portfolio occupancy and debt profile:

Financial Figures (3Q FY2024 vs. 3Q FY2025, and 9M FY2024 vs. 9M FY2025)

3Q FY2024 vs. 3Q FY2025:

3Q FY20243Q FY2025% Variance
Gross Revenue (S$’mil)$25.1m$10.8m-57.0%
Property Operating Expenses (S$’mil)$2.3m$1.8m-21.7%
Net Property Income (S$’mil)$22.8m$9.0m-60.5%
Calculated Distribution to Unitholders (S$’mil)$3.2m–N.M.

EC World REIT’s financial figures for the 3rd quarter of FY2025 continued to plummet compared to the same quarter a year ago.

In Singapore-dollar terms, its gross revenue and net property income plunged by 57.0% and 60.5% year on year to S$10.8 million and S$9.0 million respectively, mainly due to the termination of Master Lease Agreements (MLAs) upon lease expiry, and lower contribution from underlying leases. However, this was partially offset by income contribution from new 3rd party leases secured for Hengde Logistics Phase I.

In Chinese Renminbi-terms, the REIT’s gross revenue and net property income fell by 54.6% and 58.3% year on year respectively.

Calculated distribution to unitholders was zero (same as the first 2 quarters of FY2025), mainly due to a significant decline in its gross revenue.

9M FY2024 vs. 9M FY2025:

9M FY20249M FY2025% Variance
Gross Revenue (S$’mil)$76.3m$33.4m-56.2%
Property Operating Expenses (S$’mil)$6.4m$5.6m-12.5%
Net Property Income (S$’mil)$70.0m$27.7m-60.4%
Calculated Distribution to Unitholders (S$’mil)$16.8m–N.M.

For the first 9 months of FY2025, the REIT’s financial figures was visibly a much weaker one compared to a year ago.

The 56.2% and 60.4% year-on-year plunge in its gross revenue and net property income to S$33.4 million and S$27.7 million respectively can be attributed to the termination of MLAs upon lease expiry, as well as lower contribution from underlying leases. However, this was partially offset by income contribution from new 3rd party leases secured for Hengde Logistics Phase I.

In RMB-terms, EC World REIT’s gross revenue and net property income were down by 54.2% and 58.4% year on year respectively.

Calculated distribution to unitholders was zero (compared to S$16.8 million a year ago), due to a significant drop in revenue.

Portfolio Occupancy Profile (2Q FY2025 vs. 3Q FY2025)

If there’s something positive to highlight about EC World REIT, it is the occupancy rate of its properties – where it has gradually improved since 1Q FY2024 (which was at 71.3%), to around 86.6% in the 1Q and 2Q FY2025. However, the weighted average lease expiry (WALE) remains very short – at just between 0.7 years and 1.3 years.

Let us take a look at the REIT’s portfolio occupancy profile reported for the current quarter under review (i.e., 3Q FY2025 ended 30 September) against that reported in the previous quarter 3 months ago (i.e., 2Q FY2025 ended 30 June) to find out if the occupancy rate of its properties has continued to remain at a stable rate, or it has continue to trend upwards:

2Q FY20253Q FY2025
Portfolio Occupancy (%)86.6%84.3%
Portfolio WALE (by Gross Revenue – years)1.1 years0.9 years

Compared to the previous quarter, EC World REIT’s portfolio occupancy saw a 2.3 percentage point (pp) drop to 84.3%, as the occupancy rates of all of its properties suffered declines except for Chongxian Port Investment (where its occupancy improved from 88.9% in 2Q FY2025 to 92.2% in 3Q FY2025). The occupancy rate of Stage 1 Properties of Bei Gang remained at 100%.

On lease expiries, 43.0% of the leases by gross rental income will be due for renewal in the final quarter of FY2025, with another 38.2% of leases due for renewal in FY2026, and the remaining 18.8% of leases due for renewal in FY2027 or later.

Debt Profile (2Q FY2025 vs. 3Q FY2025)

EC World REIT’s debt profile have deteriorated with each passing quarter – particularly, its aggregate leverage have shot up by 15.6pp from 56.8% in 1Q FY2025 to 72.4% in 2Q FY2025 (and to my knowledge, it is currently the highest among all the 40+ REITs and business trusts listed on the Singapore Exchange). At the same time, its average term to debt maturity as at the end of the previous quarter (i.e., 2Q FY2025) was at just 0.2 years.

So, how are the 2 statistics like this time round? Let us find out in the table below, where you’ll find a comparison of its debt profile for the current quarter under review (i.e., 3Q FY2025) against that reported in the previous quarter (i.e., 2Q FY2025):

2Q FY20253Q FY2025
Aggregate Leverage (%)72.4%71.1%
Interest Coverage Ratio (times)1.1x0.8x
Average Cost of Debt (%)8.6%9.3%
Average Term to Debt Maturity (years)0.2 years0.2 years

While the REIT’s aggregate leverage dipped slightly (by 1.3pp) to 71.1%, but its interest coverage ratio weakened to 0.8x. At the same time, its average cost of debt also continued to climb to another new high of 9.3%.

CEO Mr Goh Toh Sim’s Comments & Outlook (from the REIT’s Press Release)

“On quarterly basis, the revenue in RMB terms was 54.6% lower compared to 3QFY2024, which largely reflects the actual drop in revenue between MLAs and underlying leases. Due to insufficient funds, there was no distribution for the periods from 1 July 2023 to date and the Manager does not expect this circumstance to be improved in the foreseeable future.

While the Manager is trying its best endeavour to negotiate with the Sponsor and its Administrator for the Sponsor Reorganisation, the Manager continues to focus on the discharging of the unauthorised mortgage imposed over FZDS and related obligations through the pending legal proceedings.

The Manager continues to explore restructuring possibilities with the existing offshore lenders for ECW’s Offshore Facilities since a Pre enforcement Notice was issued for the offshore facilities in 2024. At the date of this announcement, the Group has not received any notice of enforcement action. Nevertheless, persisting severe challenges to maintain and improve ECW’s ongoing operation and meet the financing obligations will not be overcome in short term.”

Closing Thoughts

As expected, EC World REIT’s financial performance continued to plunge in the 3rd quarter, largely due to the termination of the Master Lease Agreements (and this was also the reason for a similar set of numbers recorded for the 1st, as well as for the 2nd quarter). This had led to its calculated distribution to unitholders falling to zero for all 3 quarters this year.

With a staggering 43.0% of leases (by gross rental income) due for renewal in the final quarter of FY2025, and another 38.2% due for renewal in FY2026, the REIT’s manangement fail to secure an extension with the tenants, the REIT’s financial performance ahead could plummet further.

As far as its debt profile goes, its interest coverage ratio fell to a new-low of 0.8x, with its all-in cost of debt spiking further to 9.3% in the quarter – they are also the lowest, as well as highest respectively among the 40+ REITs and business trusts listed on the Singapore Exchange currently.

Finally, in case you’re wondering, the REIT’s distribution payout has been suspended since the 2nd half of FY2023 due to insufficient funds, and the guidance is that no distributions will be paid out this financial year (i.e., FY2025) as well.

This brings me to the end of my review of EC World REIT’s latest results for the 3rd quarter, as well as for the first 9 months of FY2025. All things considered, in my personal opinion, the REIT continues to remain in a very unfavourable situation as far as its debt profile is concerned, and I maintain my opinion that it is closer towards being liquidated (in such situation, chances are that unitholders will lose all of their monies they have invested in the REIT) than an eventual recovery.

Regardless, I will continue to share any material updates about the REIT, so that fellow unitholders can stay on top with the latest developments.

Related Documents

Disclaimer: At the time of writing, I am a unitholder of EC World REIT.

REITs vs Banks: Which Investment Delivers More for Income Seekers?

REITs vs. Singapore Banks - A Fireside Chat with The Singaporean Investor to Get Your Burning Questions Answered

If you thought 2025 was a wild ride for the stock market, wait until you see 2026! With not only the uncertainty of interest rate changes and geopolitical tensions but also a military operation by Israel and the United States against Iran, it's set to be even more turbulent.

So, with all this in mind, which is the better choice for income investors: REITs or banks?

I'm honoured to be re-invited by Dinah Poehlmann from Your Finance Mind for a fireside chat on Zoom this year, where I'll be sharing my insights on this topic.

Join me on Thursday, 19 March 2026, from 8pm to 9pm, as I offer my thoughts and answer any questions you may have.

Best part? Registration is completely free! Secure your spot now through the link below:

👉 Sign Up Now and Mark Your Calendars

 

Are You Worried about Not Having Enough Money for Retirement?

You're not alone. According to the OCBC Financial Wellness Index, only 62% of people in their 20s and 56% of people in their 30s are confident that they will have enough money to retire.

But there is still time to take action. One way to ensure that you have a comfortable retirement is to invest in real estate investment trusts (REITs).

In 'Building Your REIT-irement Portfolio' which I've authored, you will learn everything you need to know to build a successful REIT investment portfolio, including a list of 9 things to look at to determine whether a REIT is worthy of your investment, 1 simple method to help you maximise your returns from your REIT investment, 4 signs of 'red flags' to look out for and what you can do as a shareholder, and more!

Get Your Copy of building Your REIT-irement Portfolio Here

You can find out more about the book, and grab your copy (ebook or physical book) here...