EC World Real Estate Investment Trust IPO Prospectus Fundamental Analysis

EC World REIT Logo

Forchn Group Sponsor Logo

See EC World REIT IPO Prospectus here.

  • Type = Industrial (China)
  • Sponsor = Forchn Holdings Group (41% to 45% shares)
  • Total Unit Offered =  Between 172,368,700 and 191,046,300 Units
  • IPO Offer Price = Between S$0.76 to S$0.82
  • NAV = $0.88
  • Price / NAV = between 0.8636  to 0.9318
  • Distribution Yield = 7.0% (2016), 7.2% (2017) at Maximum Offer Price
  • WALE = 4.6 Years
  • Occupancy Rate = 92.3%
  • Gearing Ratio = $391.195 Million / $1,303.443 Million = 30.0%
  • Plan Listing: July, 2016

Compare to other Singapore REITs here.

EC World REIT Portfolio July7-2016EC World REIT Rental Yield July7-2016EC World REIT yield with wo master lease July7-2016EC World REIT Summary Fine PrintEC World REIT Rental Contribution July7-2016EC World REIT Rental Occupancy July7-2016EC World REIT Sector Diversification July7-2016EC World REIT Top 10 Tenant1 July7-2016EC World REIT Top 10 Tenant2 July7-2016

EC World REIT WALE July7-2016

EC World REIT Structure July7-2016

CNY SGD July8-2016

EC World Real Estate Investment Trust IPO Prospectus

EC World REIT Logo

Singapore REIT IPO is getting very hot these few months. EC World Real Estate Investment Trust is another new IPO after Manulife US REIT and Frasers Logistics & Industrial Trust recently. The EC World REIT IPO prospectus has 565 pages and I need sometime to digest and work out a summary. Just send a note here to inform everyone on this new REIT IPO. You can find the EC World Real Estate Investment Trust IPO Prospectus here.

Read related news on EC World Real Estate Investment Trust IPO in Singapore here.

Singapore REIT Fundamental Analysis Comparison Table – 3 July 2016

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increases from 717.26 to 745.33 (+3.91%) compare to last post on Singapore REIT Fundamental Comparison Table on June 5, 2016. The index rebounded strongly from 200D SMA support and stay above all the 20D/50D/200D SMA. 200D SMA also starts to trend upward. This is the bullish sign and technically Singapore REIT sector is in bullish territory. SGX S-REIT (REIT.SI) Index increases from 1102.94 to 1141.99 (+3.54%)

 

FTSE ST REIT Index July3-2016FTSE ST REIT Index July3a-2016

  • Price/NAV increases from  0.948 to 0.97 (Singapore Overall REIT sector is slightly under value now)
  • Distribution Yield decreases from 7.25% to 7.14% (take note that this is lagging number). More than half of Singapore REITs (20 out of 39) have Distribution Yield > 7%. Current yield is attractive (for certain REITs only) but dangerous to make investing decision purely base on the yield. Past performance does NOT equal to future performance.
  • Gearing Ratio decreases from 34.76% to 34.53%.  24 out of 39 have Gearing Ratio more than 35%.
  • Most overvalue is Parkway Life (Price/NAV = 1.491),  followed by Ascendas iTrust (Price/NAV = 1.42).
  • Most undervalue (base on NAV) is Sabana REIT (Price/NAV = 0.609), followed by Far East HTrust (Price/NAV = 0.656) andFortune REIT (Price/NAV = 0.721).
  • Higher Distribution Yield is Sabana REIT (10.09%), followed by Lippo Malls Trust (9.35%) followed by Cache Logistic Trust (9.48%)
  • Highest Gearing Ratio is Croesus Retail Trust (46.2%), iREIT Global(43.1%) and OUE Commercial Trust (40.5%)
  • Note: Recent IPO of Manulife US REIT and Frasers Logistic & Industrial Trust are added.

Singapore-REIT-Fundamental-Analysis-and-Comparison-Table-3-Jul-2016

Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. To learn how to use the table and make investing decision, Sign up next REIT Investing Seminar here to learn how to choose a fundamentally strong REIT for long term investing for passive income generation.

  • Singapore Interest Rate maintains at 0.23%

Singapore Interest Rate July3-2016 SIBOR July3-2016

  • 1 month decreases 0.75634% to 0.75000%
  • 3 month decreases from 1.00192% to 0.99463%
  • 6 month decreases from 1.23863% to 1.23466%
  • 12 month maintains at 1.37375%

Fundamentally Singapore REITs in general, the valuation and distribution yields are still attractive. Technically Singapore REITs sector is in bullish territory and on uptrend. US Fed may delay the interest rate hike as there are a lot of uncertainties due to Brexit.  This may probably be the reason why Singapore REIT is coming back to life again!  Find out Which Singapore REIT to Buy, Which Sectors to consider,  and When is the Right Time to Buy in the next Singapore REITs Investing class.

 

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