First REIT AW9U has reported a distribution per unit (DPU) of 0.66 cents for the 4QFY2022 ended Dec 31, 2022, unchanged q-o-q since the 1QFY2022. The quarterly DPU, which also stood unchanged from the same period the year before, is payable on March 30.
This brings the trust’s FY2022 DPU to 2.64 cents, 1.1% higher than the DPU of 2.61 cents in FY2021.
Rental and other income for the FY2022 increased by 8.7% y-o-y to $111.3 million mainly due to the contribution from the trust’s newly-acquired properties in Japan. Of the 14 properties, 12 were acquired in March and two were acquired in September 2022. Higher income from the trust’s Singapore and Indonesia properties also contributed to the higher revenue.
Rental and other income for the 2HFY2022, however, fell by 9.3% y-o-y to $57.5 million mainly due to the full year 2021 straight-lining adjustments of $22.7 million that were recognised in 2HFY2021.
Net property and other income for the FY2022 increased by 8.3% y-o-y to $108.6 million in line with the new revenue. The higher net property and other income also rose as the new Japan properties more than offset the higher property operating expenses.
Distributable income rose by 24.4% y-o-y to $52.4 million.
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As at Dec 31, 2022, the trust’s weighted average lease expiry (WALE) stood at 12.5 years on a gross floor area (GFA) basis.
As at Dec 31, 2022, the trust’s gearing stood at 38.5% with an interest coverage ratio of 5.0 times. Its debt maturity profile also improved with no debt refinancing requirements until FY2025.
The trust has also pegged 59.6% of its debt on fixed rates, and entered into non-deliverable forward contracts and call spreads to hedge net cashflow from Indonesia.
Following its Japan acquisition, the trust’s developed markets portfolio has increased to 25.1% of assets under management (AUM), making it on track to meet its target of 50% by FY2027.
Cash and cash equivalents as at end-December stood at $46.1 million.
“With First REIT’s balanced portfolio of 32 high-quality healthcare and healthcare-related assets in developing and developed markets, the trust has been able to deliver stable and sustainable growth. Although global inflationary pressures, rising interest rates, exchange rate volatility, and geopolitical risks have resulted in a challenging real estate investment environment, we will continue to harness First REIT’s 2.0 growth strategy to enhance the resiliency of our distributions to unitholders, while also delivering positive social impact,” says Victor Tan, executive director and CEO of the manager.
Units in First REIT closed flat at 27.5 cents on Feb 13.
