First REIT has reported a lower distribution per unit (DPU) for the FY2024 ended Dec 31, 2024 of 2.36 cents, a 4.8% y-o-y decrease. 

 

The 4QFY2024 DPU came in at 0.58 cents, consistent with the previous quarter, but 3.3% lower compared to 1QFY2024 and 2QFY2024&rsquo s DPU of 0.60 cents. 

 

First REIT says that the decline was largely due to the depreciation of the Japanese yen and Indonesian rupiah against the Singapore dollar, coupled with the enlarged unit base, an 0.8% increase from the year prior, resulting from the issuance of units for payment of management fee to the manager of the REIT. 

 

The REIT&rsquo s rental & other income dropped 5.9% y-o-y for the FY2024 to $102.2 million, and net property and other income fell 6.5% y-o-y to $98.5 million. 

 

Distributable amount declined by 4.1% y-o-y to $49.3 million in FY202. 

 

Likewise, the REIT says that the decline in financial performance comes from the depreciation of the Japanese yen and Indonesian rupiah against the Singapore dollar. The currency impact was partly offset by higher rental income in local currency terms from Indonesia and Singapore properties.

 

The REIT&rsquo s total debt as at Dec 31, 2024 stood at $459.6 million, and its gearing ratio at 39.6%. Its weighted average term to maturity is 2.5 years, and interest cover ratio is 3.8 times. 

 

The REIT&rsquo s weighted average lease expiry (WALE) is 10.6 years from 11 tenants. 

 

Victor Tan, executive director and CEO of the manager says that the rental and other income for Indonesia and Singapore properties increased by 4.7% and 2.0% respectively in local currency terms while rental and other income for their Japan properties remained stable. 

 

&ldquo First REIT&rsquo s healthcare and healthcare-related portfolio continued to demonstrate healthy underlying performance and operational strengths in FY2024. Our sustainable lease structures and 100% committed occupancy rates were the Trust&rsquo s key drivers during this year of economic uncertainties,&rdquo says Tan. 

The private healthcare player operates the trust&rsquo s healthcare properties in the country

 

THE manager of First Real Estate Investment Trust : AW9U 0% (Reit) said on Monday (Jan 13) that it received a preliminary non-binding letter of intent (LOI) from Siloam International Hospitals to acquire the Reit&rsquo s portfolio of hospital assets in Indonesia.

 

Siloam is the existing operator and tenant of these assets.

 

The board of First Reit&rsquo s manager will conduct a strategic review to assess the LOI and explore all strategic options for the trust, the manager said in a bourse filing.

 

&ldquo Through the strategic review, the board is committed to undertaking a rigorous process to consider all options relating to the business of First Reit, which may include but are not limited to, exploration of joint ventures, strategic partnerships, asset acquisitions and/or asset divestments,&rdquo said the manager.

 

This will be done with the view of delivering &ldquo sustainable, long-term value&rdquo to First Reit&rsquo s unitholders, the manager added.

 

However, there is no certainty that any transaction will arise from the strategic review or LOI, or that a binding agreement will be reached regarding any of First Reit&rsquo s assets, it noted.

 

First Reit has 15 properties in Indonesia, comprising 11 hospitals, two integrated hospitals and malls, one integrated hospital and hotel, and one hotel and country club.

 

Its Indonesian healthcare properties are operated by Siloam, a private healthcare player listed on the Indonesia Stock Exchange. Siloam is majority-owned by a fund managed by CVC Capital Partners.

 

In First Reit&rsquo s 2023 annual report, the group noted that Siloam was its largest tenant.

 

The healthcare provider and its subsidiaries contributed 38.7 per cent of First Reit&rsquo s rental income in FY2023, excluding FRS 116 rental straight-lining adjustments.