In 2024, EC World REIT went through strategic realignment of the lease structure. The novation of the underlying leases from the Sponsor group was completed. Majority of the master leases were discontinued pursuant to broader organizational restructuring activities. As at 31 December 2024, EC World REIT’s portfolio achieved the overall occupancy rate of 86.3%1. As at 31 December 2024 Assets Type of Lease Committed Occupancy Rate Chongxian Port Investment Multi Tenanted 92.2% Fu Heng Warehouse Multi Tenanted 74.5% Hengde Logistics Multi Tenanted 91.1% Wuhan Meiluote Multi Tenanted 77.4% Fuzhou E-commerce Multi Tenanted 72.3% Stage 1 Properties of Bei Gang Logistics2 Master leased 100% Chongxian Port Logistics Multi Tenanted 95.9% Total Occupancy Rate 86.3% Challenging Market Conditions As a result of the significant structural change due to the prolonged financial difficulties of the Sponsor Group, rental assumptions used in the cash flow projections were revised to reflect current market conditions which are significantly below the historical contracted rates under the master leases. In 2024, China’s total online retail sales reached RMB15.52 trillion, representing a 7.2 percent year-on-year increase. Physical goods sold online accounted for 26.8% of the country’s total retail sales, underscoring the continued importance of e-commerce in China’s consumption landscape3. Despite this growth, the overall consumption recovery remained modest, and offline retail performance continued to lag amid ongoing economic 1 Underlying occupancy rate weighted by NLA. 2 As at 31 December 2024. MLA: Master Leased Agreement; Negotiation on Master Settlement Agreement with the Sponsor Group is pending 3 https://www.stats.gov.cn/sj/zxfb/202502/ t20250228_1958817.html. uncertainties. As a result, logistics and warehousing expansion plans by e-commerce platforms and merchants became more cautious. This has affected the REIT’s ability to secure replacement tenants, particularly in regions where market rents are stagnant and warehouse supply remains high. Overdue Rent Receivables and Financial Impact As of 31 December 2024, the accrued overdue rent receivables owed to the EC World REIT by the Sponsor Group amounted to approximately RMB629.9 million (S$117.4 million). This includes RMB547.4 million (S$102.0 million) arising from rent payable under the former master leases, and RMB82.5 million (S$15.4 million) from other related party lease arrangements. ANNUAL REPORT 2024 13 MANAGEMENT REVIEW
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