EC World REIT is a Singapore REIT that invest in properties used primarily for e-commerce, supply-chain management and logistics purposes with geographical focus on the PRC. EC World REIT share price has fallen from a high of 47 cents to current price of 34 cents ever since the results was announced on 23 Feb 2023. That is more than 27% drop in value in only about 2 weeks; this does seem like a record for a REIT but at the wrong end :O. Investors who are vested in this REIT must be feeling very concerned; hence we wish to do a deep dive to understand some of the reasons behind the drastic fall in EC World REIT’s price.

1. Lack of confidence in Sponsor

First things first, EC World REIT is heavily indebted and wish to divest Stage 1 Properties of Bei Gang Logistics and Chongxian Port Logistics on 3 Oct 2022 which will help to pare down the outstanding loans due on 31 Dec 2022....