In March 2026, the Manager announced the short-term lease renewal for Siloam Hospitals Lippo Cikarang, commencing on Jul 1 to Dec 31, with an option for further extension from Jan 1 2027 to Jun 30 2027.
First REIT had a challenging 1Q2026 due to currency headwinds. Rental and other income declined 8.4% y-o-y to $23.2 million in 1Q2026. Net property and other income fell 8.3% y-o-y to $22.5 million over the same period. The decrease in rental and other income was primarily due to the loss of income following the divestment of Imperial Aryaduta Hotel & Country Club as well as the significant depreciation of Indonesian Rupiah and Japanese Yen against the Singapore Dollar, partly offset by higher rental income from Indonesia and Singapore properties. Distributable Income declined by 12.5% y-o-y to $10.6 million in 1Q2026. DPU has dipped to 0.50 cents in 1Q2026 down 13.8% y-o-y mainly due to foreign currencies depreciationg against the Singapore dollar, and an enlarged unit base resulting from the issuance of units for payment of management fees. Net asset value per unit as at Mar was 24.42 cents down from 24.97 cents a year ago due to depreciation of the foreign currencies against the Singapore Dollar.
As at Mar 31, 44.2% of the debt portfolio was either on fixed rates or hedged. Aggregate leverage rose to 44.6% and interest coverage ratio amounted to 4.4 times. Cost of debt improved to 3.9% in 1Q2026 compared to 4.7% a year ago. First REIT has secured a 12-month extension of its $300 million term loan and revolving credit facilities, extending its maturity date from May 2026 to May 2027. The Manager is currently in discussions with lenders for the refinancing of the Japanese Yen-denominated social loan due in September 2026.
