Reader says…
What do you think of EC World REIT?

AK says…
EC World REIT, I looked at it and was in the process of blogging about it but, somehow, it joined the ranks of half finished blogs. I have about 400 of these. Terrible, I know.

Looking at that half finished blog, I remember I was concerned about the relatively short land leases, similar to most Singapore industrial land leases and the relatively low distribution yield.

The yield was 7% or so and this was because it was bolstered by the sponsor as well. Without the sponsor’s support, the yield would have been much lower. Less than 6%.

Still, the sponsor accounted for two thirds of the REIT’s income. Real concentration risk.

There was also something about having debt denominated in S$ which I didn’t like. I would have liked for all the debt to be in RMB which would …