Brief Overview:

EC World REIT (SGX: BWCU) is a China-based REIT where its properties are predominantly used for specialised and e-commerce logistics. 

Its portfolio currently comprises 7 properties, with most of them in one of the largest e-commerce clusters in the Yangtze River Delta.

Trading of the REIT’s units continue to remain suspended since 31 August 2023, due to the lack of funds to meet its interest obligations. Distribution payout to unitholders has also been suspended since 1H FY2023 for the same reason.

Notable Developments Since the REIT’s 3Q FY2025 Results Release:

December 2025: The REIT was granted another extension by the SGX till 31 May 2026 to submit their proposal for trading resumption. This allows the REIT more time to address issues surrounding its loan repayment.

January 2026: Following the dismissal of EC World REIT’s appeal regarding the validity of the unauthorised mortgages on its properties by the People’s Court of Fuyang District, the REIT plans to seek a re-trial at higher courts, as advised by its PRC legal counsel.

Financial Figures (4Q FY2024 vs. 4Q FY2025): 

	4Q FY2024	4Q FY2025	% Gain/Loss
Gross Revenue (S$’mil)	$15.9m	$7.0m	-55.4%
Property Operating Expenses (S$’mil)	$4.7m	$2.6m	-44.7%
Net Property Income (S$’mil)	$11.2m	$4.4m	-67.9%

EC World REIT’s gross revenue and net property income sank further in the 4th quarter, by 55.4% and 67.9% on a year on year basis to S$7.0 million and S$4.4 million respectively, due to the termination of master lease agreements upon lease expiry for Chongxian Port Investment, lower contribution from underlying leases, decrease in market rent and lower late fee income.

There wasn’t any distributable income to unitholders this time round (as expected) mainly due to a significant drop in revenue and higher operating expenses at its properties.

Financial Figures (FY2024 vs. FY2025):

	FY2024	FY2025	% Gain/Loss
Gross Revenue (S$’mil)	$92.1m	$40.4m	-56.1%
Property Operating Expenses (S$’mil)	$8.3m	$8.2m	-1.2%
Net Property Income (S$’mil)	$83.7m	$32.1m	-61.6%
Calculated Distribution to Unitholders (S$’mil)	$15.8m	$0.0m	-100.0%

The magnitude of decline (in percentage terms) in EC World REIT’s gross revenue and net property income steepened with each passing year since FY2022, as follows:

• Gross Revenue: -3.1% (FY2022) -> -11.3% (FY2023) -> -14.6% (FY2024) -> -56.1% (FY2025)
• Net Property Income: -1.8% (FY2022) -> -10.6% (FY2023) -> -15.6% (FY2024) -> -61.6% (FY2025)
• Distributable income to unitholders has also plunged from S$38.6 million in FY2022 to zero in FY2025.

For the current financial year under review, the 56.1% and 61.6% year-on-year plunge in its gross revenue and net property income (to S$40.4 million and S$32.1 million respectively) can be attributed to the termination of master lease agreements upon lease expiry, lower contribution from underlying leases, decreases in market rent and lower late fee income. However, this was partially offset by new 3rd party leases secured for Hengde Logistics Phase I and Merlot. 

Portfolio Occupancy Profile (3Q FY2025 vs. 4Q FY2025):

	3Q FY2025	4Q FY2025
Portfolio Occupancy (%)	84.3%	83.4%
Portfolio WALE (by Gross Revenue – years)	0.9 years	0.9 years

The only bright spot (in my opinion) was the occupancy rate of its properties, where, apart from Fuzhou E-commerce and Fu Heng Warehouse (where the occupancy rate of the 2 properties were at 58.9% and 77.3% respectively), the other properties had an occupancy rate of at least 85%, which I consider to be rather decent. 

However, in terms of lease expiries, a huge percentage of leases will be expiring by the end of the next financial year 2026 (79.4%), and a big question is whether the tenants will renew their leases. If they do not, the REIT potentially have a very big hole to fill. Not only that, its financial performances will suffer from another huge tumble. 

Debt Profile (3Q FY2025 vs. 4Q FY2025): 

	3Q FY2025	4Q FY2025
Aggregate Leverage (%)	71.1%	73.5%
Interest Coverage Ratio (times)	0.8x	0.6x
Average Cost of Debt (%)	9.3%	8.6%
Average Term to Debt Maturity (years)	0.2 years	0.1 years

No surprises there to see the REIT’s aggregate leverage hitting another new high (at 73.5%), and interest coverage reaching a new low (at just 0.6x).

There remains no indication that this situation is going to get better anytime soon. 

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

“On quarterly basis, the revenue in RMB terms was 55.8% lower compared to 4QFY2024 (Restated). While the negotiations with the Administrator of the Sponsor to resolve the outstanding receivables are ongoing, the Manager remains committed to actively exploring options to divest some or whole of the Group’s assets to pare down existing facilities. In the meantime, the Manager, with the close guidance of all independent directors, is trying its best endeavour to improve the performance of the ECW Group amid severe persisting challenges from operation and financing activities.”

Closing Thoughts

EC World REIT’s financial performance has continued to worsen with every passing quarter. This resulted in its distributable payout to unitholders to remain at zero for the 5th consecutive quarter (the first time it was reported at zero was in 4Q FY2024). 

The same can also be said for the REIT’s debt profile, with its aggregate leverage at 73.5% an all-time high. Interest coverage, at 0.6x, was also a new low. 

Occupancy rate of the REIT’s properties was the only bright spot, where 5 out of 7 of them had occupancy rates of above 85%. On the other hand, I note that close to 80% of the leases be expiring come end-2026, and if the tenants choose not to renew their leases, the REIT’s financial performance will suffer from another big blow. 

Looking at how things are going, its increasingly likely that its a matter of ‘when’, and not ‘if’, that the REIT will end up being liquidated (when it happens, then retail investors will likely end up losing all of their capital invested). 

Related Documents:

Press Release
Financial Statements
Presentation Slides

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

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

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!

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