EC World REIT reported gross revenue of S$40.4 million for the 12 months ended Dec 31, 2025, down 56.2 per cent year-on-year as the expiry of four master lease agreements, lower underlying rents and a weaker renminbi curbed income. Net property income (NPI) slid 61.6 per cent to S$32.1 million.
The trust did not declare any distribution for FY2025, citing insufficient cash to meet liabilities. A year earlier it paid S$13.1 million, or 1.616 Singapore cents per unit.
Revenue in the fourth quarter fell 55.6 per cent YoY to S$7.0 million, while NPI tumbled 67.7 per cent to S$4.4 million. Finance costs for the full year decreased 11.1 per cent to S$43.5 million thanks to a smaller loan base and the absence of standby-letter-of-credit expenses, partly offset by default interest.
Performance was weighed by the termination of the four master leases and by RMB329.1 million in overdue rent receivables from the sponsor group. The manager has filed preliminary claims of RMB1.14 billion against the sponsor entities, covering unpaid rents, penalties and contingent liabilities linked to mortgages and unauthorised guarantees.
Occupancy across the seven-asset portfolio was 83.4 per cent at end-December, with a weighted average lease expiry of 0.9 year by gross rental income. Aggregate leverage jumped to 73.5 per cent from 57.0 per cent a year earlier after a 21.2 per cent decline in portfolio valuation, breaching a 40 per cent covenant on its offshore facility. The manager said it intends to restructure borrowings and pursue asset disposals to deleverage.
Chief executive Goh Toh Sim said revenue in renminbi terms was more than halved compared with the previous fourth quarter. He noted that talks with the sponsor’s administrator to offset receivables against payables are continuing, and that the team is “actively exploring” partial or full asset divestments while seeking to improve operating metrics amid financing constraints.
Looking ahead, the manager expects China’s logistics property market to remain subdued in 2026, with policy measures aimed at stabilisation rather than robust growth. Until cash flow improves and legal disputes over mortgages and guarantees are resolved, distributions will remain suspended and the REIT’s units will stay halted from trading on the Singapore Exchange.