SINGAPORE (Apr 17): The manager of First Real Estate Investment Trust (First REIT) has posted a distribution per unit (DPU) of 2.15 cents for the 1Q ended March, some 0.5% higher than DPU of 2.14 cents a year ago.
Gross revenue increased 5.8% to $28.7 million in 1Q18, from $27.2 million a year ago.
This was mainly due to contributions from newly-acquired Siloam Hospitals Buton & Lippo Plaza Buton and Siloam Hospitals Yogyakarta, which were added in October and December 2017, respectively.
In addition, First REIT saw higher rental income from existing properties in Indonesia and Singapore during the quarter.
Correspondingly, net property income for the quarter rose 5.8% to $28.4 million in 1Q18, from $26.9 million a year ago.
The amount available for distribution grew 1.8% to $16.9 million in 1Q18, from $16.6 million a year ago.
As at end March, cash and cash equivalents stood at $17.0 million.
With gearing at 34.1% as at Mar 31, 2018, the manager says First REIT has “ample debt headroom for future acquisitions”.
Looking ahead, the manager believes First REIT remains well-positioned for further growth, as demand for private healthcare in Indonesia continues to rise with the growing nationwide adoption of the national health insurance scheme.
“Our long-term strategy of making yield-accretive acquisitions has allowed the trust to grow its returns steadily over the years,” says Victor Tan, chief executive officer of the manager.
“Going forward, we will continue to uphold this strategy, maintain our resilient rental structure and manage our capital resources prudently to further enhance income stability and maximise returns to unitholders,” he adds.
Units of First REIT closed flat at $1.37 on Tuesday.
