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07
EC World Real Estate Investment Trust ANNUAL REPORT 2016
LETTER TO
UNITHOLDERS
Dear Unitholders,
On behalf of the Board of Directors and management of
EC World Asset Management Pte. Ltd. (“the Manager”),
as Manager of EC World REIT (“ECW”), we are pleased to
present the report to ECW Unitholders for the Financial
Year ended 31 December 2016 (“FY2016”).
It was a monumental year for ECW, as we completed
the listing of ECW on the SGX-ST Mainboard on 28 July
2016. We are delighted to welcome prominent investors
like China Cinda Asset Management, Fosun International
Holdings, BOCOM International Global Investment
Limited, other investment fund managers and the many
retail tranche subscribers who had participated in the
successful IPO which, together with debt financing,
raised approximately SGD1.0 billion in total funding.
We are grateful to our financial, legal and audit
advisors for their effort and commitment in the
preparation of the IPO in order to ensure that the
listing was successful. At the same time, we wish to
express our appreciation to the Monetary Authority
of Singapore (“MAS”) and the Singapore Stock
Exchange (“SGX”) for granting us approval to list on
SGX-ST Mainboard. Lastly, we also give special mention
to the Independent Directors, Mr Chan Heng Wing,
Mr Wong See Hong, Mr Li Guosheng, and Mr Chia Yew
Boon, and the Executive Directors, Mr Lai Hock Meng
and Mr Goh Toh Sim, for their valuable contributions.
Since listing, the property portfolio of ECW has delivered
consistent growth and stable performance, and we are
glad to report that the performance for the period from
listing to 31 December 2016 exceeded the forecasts
in the IPO prospectus. On a pro-rated basis, the Gross
Revenue of ECW performed better than the forecast by
4.8% in terms of Singapore dollars, mainly due to the
higher contribution from the underlying assets in the five-
months period, as well as from the appreciation of the
Renminbi (“RMB”). Distributable Income also exceeded
forecast by 0.3% during the same period. These were
achieved despite the Manager’s decision not to proceed
with the investment of RMB301.7 million (approximately
SGD62.8 million) of security deposit received from the
Master Lease tenants into a managed portfolio of debt
securities, (which was the Manager’s intention at the time
of the IPO) as per our announcement of 4Q results dated
22 February 2017.
We have been able to strengthen the management team
of the Manager, with the additions of two veteran REIT
executives since January 2017. Mr Alvin Cheng Yu-Dong
(as Executive Director and Deputy CEO) and Mr Tng Chin
Hwee (as CFO) both have extensive experience in managing
cross-border REITs.
Since listing, the property
portfolio of ECW has delivered
consistent growth and stable
performance, and we are glad to
report that the performance
for the period from listing up to
31 December 2016 exceeded
the forecasts made in the
IPO prospectus.
“
”
Mr Zhang Guobiao
MACRO ECONOMY: YEAR IN REVIEW
The year 2016 has seen heightened uncertainties across
the global political and economic landscape. These events
will have profound impact on the politics and economic
policies which drive financial markets and global trade.
We will monitor such developments closely to prudently
manage any risks and impact on ECW.