The manager of First REIT has announced a 1.95 cents distribution per unit (DPU) for 9MFY2021, down 41.1% y-o-y from 3.31 cents previously.
The decline is mainly due to the issuance of 791 million rights units on Feb 24, which are entitled to participate in the 1Q, 2Q and 3Q2021 distribution.
Excluding these new rights units issued, the adjusted DPU for 9MFY2021 is 3.83 cents, up 15.7% y-o-y. Meanwhile, the 3QFY2021 ended September DPU is 0.65 cents.
The distribution payment date will be on Dec 17.
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Rental and other income dipped by 2% in 9MFY2021 to $58.1 million. This is largely due to one-month and half-month rental reliefs extended for the month of July to the tenants of its hotels; Hotel Aryaduta Manado and Imperial Aryaduta Hotel and Country Club, as well as shopping malls Lippo Plaza Buton and Lippo Plaza Kupang to alleviate the impact of the ongoing pandemic.
Net property and other income for the period declined 2.2% to $56.5 million, following a 3.2% increase in property expenses due to the absence of property tax rebate received for Singapore properties in view of Covid-19 in 2020.
In its business outlook, the manager remains confident in the fundamental secular trends that will drive Indonesia’s private healthcare demand over the longer term. However, the near-term macroeconomic outlook continues to be challenging, with currency and pandemic-related risks.
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While some critical restructuring has been completed to stabilise the REIT, the manager has to continue to relook its overall strategy to ensure its resilience and will work towards improving performance for unitholders.
Units in First REIT closed 1.92% higher at 26.5 cents on Oct 26.
Photo: First REIT
