SINGAPORE (July 21): The manager of First REIT announced Monday night that it expects the REIT’s distribution per unit (DPU) for 1H20 to decline by 40% to 50% from the 4.30 cents posted in 1H19, according to a preliminary review conducted for First REIT’s unaudited half year financial results ended June 30.
Similarly, the REIT expects a 40% to 50% fall in its distributable income in 1H20 from the $34.2 million posted a year ago.
The decline in DPU and distributable income is attributable to the extension of two months of rental relief to all of the REIT’s tenants for May and June this year.
The manager says it also expects First REIT’s total return after tax in 1H20 to slide by some 50% to 60% from the $30.9 million recorded in 1H19.
As the REIT conducts property valuations at the end of every financial year, the manager says there may be “uncertainty” relating to the carrying amounts of the REIT’s investment properties as at June 30, and that it has not taken into account the impact of the Covid-19 pandemic, which may be “significant”.
The REIT says its half-year results will be announced on or before July 22.
Units in First REIT closed flat at 70.5 cents on Monday, prior to the announcement.
