SINGAPORE (July 17): The manager of First Real Estate Investment Trust (First REIT) posts a 1.4% increase in distribution per unit (DPU) to 2.14 cents for the second quarter ended June, from 2.11 cents a year ago.
Distributable income grew 2.5% to $16.6 million in 2Q, from $16.2 million a year ago.
Gross revenue grew 3.3% to $27.5 million, from $26.6 million a year ago.
This was mainly due to the maiden full-quarter contribution from Siloam Hospitals Labuan Bajo (SHLB), which was acquired in December 2016.
Property operating expenses increased by 14.1% to $323,000 for 2Q, mainly due to higher property expenses incurred with the acquisition of SHLB.
Consequently, net property income rose 3.2% to $27.2 million.
Cash and cash equivalents stood at $27.6 million as at June 30, 2017.
The 2Q DPU will be payable on Aug 28, 2017.
First REIT’s manager Bowsprit Capital Corporation says CEO Dr Ronnie Tan is retiring after 10 years at the helm.
CFO Victor Tan has been re-designated as acting CEO and executive director of the board.
“Following the acquisition of SHLB in December last year, and with our sponsor, PT Lippo Karawaci Tbk’s strong pipeline of over 40 healthcare assets in Indonesia for acquisition, the Trust plans to acquire one or two high-quality properties this year to further boost our income stream,” says Tan.
First REIT is also looking to capitalise on the increased demand for nursing homes in Singapore.
“Currently, the Trust owns three nursing homes in Singapore and we are on constant lookout for opportunities here, either through acquisitions or asset enhancement initiatives of existing assets to optimise their value,” he adds.
Units of First REIT closed half a cent lower at $1.34 on Monday.
