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23
EC World Real Estate Investment Trust ANNUAL REPORT 2016
Management
REVIEW
Operation Review
The portfolio had a stable performance in FY2016 with its strength derived from a good mix of master leases and multi-
tenant leases with a relatively long weighted average lease to expiry. The efforts of the Management and the Property
Manager have resulted in strong performance across the entire portfolio as we continue to seek ways to maximise
income while minimising expenses and disruptions to operations.
The quality of the portfolio is reflected in its high
underlying occupancy rate of 97.4%
1
as at 31 December
2016. If taking into consideration the master lease
for the Stage 1 Properties of Bei Gang Logistics, the
contractual occupancy rate of the portfolio is 100%.
This strong performance of the portfolio has its
foundations built on the stickiness of leases of the
port asset (Chongxian Port Investment), e-commerce
warehouse (Fu Heng Warehouse), as well as tobacco
warehouse (Hengde Logistics). These properties are
respectively leased to Hangzhou Fu Gang Supply
Chain Co., Ltd. (a port operator controlling more
than 50% of the market share in steel products in
Hangzhou), Hangzhou Fuyang Yunton E-Commerce
Co., Ltd. (an e-commerce logistics operator servicing
the big e-commerce operators in China) and China
Tobacco Zhejiang Industrial Co., Ltd (a large Tobacco
manufacturing company), all of whom are underpinned
by solid underlying business performances.
Stable and high occupancy underpinned by tenants with strong businesses
Assets
Type of Lease/No. of Tenants
Underlying Tenant
Occupancy Rate (%)*
Contractual
Occupancy Rate (%)*
Fu Heng Warehouse
Master leased
100%
100%
Stage 1 Properties of Bei Gang
Logistics
Master leased
85%
100%
Chongxian Port Investment
Master leased
100%
100%
Chongxian Port Logistics
Multi-tenanted/30 tenants
100%
100%
Fu Zhuo Industrial
Multi-tenanted/2 tenants
100%
100%
Hengde Logistics
Multi-tenanted/2 tenants
100%
100%
*
As at 31 December 2016
1
Underlying occupancy rate weighted by NLA.
Stockyard for steel products at Chongxian Port Investment