EC World REIT net property income falls 53.7% in Q1

The group is currently looking to sell some of its assets to pay off debts.

EC World Asset Management Pte. Ltd., as the manager of EC World Real Estate Investment Trust reported a net property income of $10.78m in the first quarter of 2025, a 53.7% drop from $23.31m from the same period last year.

Gross revenue dropped 49.9%. The group attributed the drop in revenue and NPI to revenue to the termination of master leasing agreements (MLAs) upon lease expiry for Chongxian Port Investment, Beigang Logistics Stage 1, Fu Heng Warehouse and Fuzhou E-commerce, lower contribution from underlying leases, offset by income contribution from new third-party leases secured for Hengde Logistics Phase I and higher late fee income.

As of 31 March 2025, the accrued overdue rent receivables owing to ECW and its subsidiaries by the sponsor and its subsidiaries has exceeded $119.4m

The REIT manager said it is negotiating with the sponsor for a master offset agreement to offset all the receivables from the sponsor group against its payables to the sponsor group including the security deposit amount paid by the master lessees and the advance payments received from the purchasers of the proposed divestment, hence no impairment allowance was made.

However, the ongoing reorganisation of the sponsor announced on 27 March 2025 may have impacts over the on-going negotiation.

Meanwhile, the manager said it is exploring options to divest some or all of the group’s properties to pare down existing facilities with cash proceeds in order to be accepted by the lenders of the Offshore Facility for a possible refinancing or restructuring.

At the date of this announcement, the Group has not received any offer to purchase from potential buyers, nor any notice of enforcement action from the lenders. In the meantime, the manager, under the close guidance of all independent directors, continues to make its best endeavour to stabilise the performance of the ECW Group amidst the ongoing persisting challenges from operation and financing activities.

Trading of EC World REIT's shares has been suspended since August 2023.