Its DPU for period is S$0.0165, a 7.3% decline from same period in the prior year

 

[SINGAPORE] The manager of   First Real Estate Investment Trust (Reit)   : AW9U -1.75% reported a 6.1 per cent fall in the trust&rsquo s distributable income for the nine-month period ending Sep 30 to S$34.8 million, from S$37 million in the corresponding period in the previous year.

 

The distribution will be paid out on Dec 18.

 

In a bourse filing on Tuesday (Oct 28), the Reit&rsquo s manager reported a distribution per unit of S$0.0165 for 9M 2025, a decline of 7.3 per cent from S$0.0178 in the same period in the prior year. The fall was mainly due to the depreciation of the Indonesian rupiah against the Singapore dollar and an enlarged unit base due to the issuance of units as payment of fees to the manager.

 

Rental and other income fell 2 per cent to S$75.5 million in 9M 2025 from S$77 million in 9M 2024. Net property and other income was down 1.4 per cent at S$73.3 million from S$74.4 million in the first nine months of 2024. This was mainly driven by the depreciation of the Indonesian rupiah against the Singapore dollar. The impact was partly offset by higher rental income from properties in Indonesia and Singapore.

 

The strategic review of First Reit is still ongoing, and the manager will update unitholders on any material developments.

Manager believes it is prudent to continue to have in place a short-term lease in line with market terms while its strategic review continues

 

[SINGAPORE]   First Real Estate Investment Trust (Reit)   : AW9U 0% has extended the lease of Siloam Hospitals Lippo Cikarang (SHLC) on a short-term basis of six months, its manager announced on Monday (Oct 27) in a bourse filing.

 

The extension is made under the terms of a master lease agreement dated Nov 8, 2010 and a deed of assignment dated Oct 10, 2011 between Graha Pilar Sejahtera (GPS), an indirect wholly owned subsidiary of First Reit and East Jakarta Medika, a wholly owned subsidiary of Lippo Karawaci, its sponsor. 

 

The lease extension prolongs SHLC&rsquo s tenancy beyond the current expiry date of Dec 30 this year, to Jun 30 next year, unless the property is divested earlier. 

 

The pro-rated rent for the extension period is set at S$2.3 million, based on an annual rent of S$4.5 million.

 

East Jakarta Medika is also required to maintain a security deposit equivalent to three months&rsquo rent for the extended period, amounting to S$1.1 million.

 

First Reit&rsquo s manager said it believes &ldquo it is prudent to continue to have in place a short-term lease in line with market terms&rdquo while its strategic review, announced in January, continues. 

 

&ldquo The renewed lease provides some revenue stability from SHLC while still allowing (us) strategic flexibility to divest SHLC should the opportunity arise,&rdquo it added.

 

Further updates will be provided to unitholders as material developments occur, said the manager.

 

In Indonesia, First Reit has 15 properties 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.

 

The lease extension follows an announcement in January that First Reit had received a preliminary, non-binding letter of intent from Siloam International Hospitals to acquire its portfolio of hospital assets in Indonesia.

 

However, First Reit&rsquo s manager noted that the SHLC extension remains subject to approvals from GPS&rsquo lenders and the trustee of First Reit, Perpetual Asia. 

 

Under the terms of the extension, if SHLC is sold, the lease will terminate upon completion of the divestment. 

 

In such a case, the landlord will retain the right to pursue any prior claims against the tenant for lease defaults, but will not be liable for any inconvenience or compensation to the tenant arising from early termination.

 

First Reit&rsquo s manager also noted that, after considering KJPP Willson&rsquo s review of the proposed rental rate and the rationale for the lease extension, its audit and risk committee concluded that the extension is on normal commercial terms and does not prejudice the interests of First Reit or its minority unitholders.

 

 

&bull Unlocks value from non-core asset at 22.2% premium over original purchase consideration

&bull Recycles capital to increase balance sheet flexibility and optimise capital structure

 

Mr Victor Tan, Executive Director and Chief Executive Officer of the Manager, said, &ldquo The Divestment Consideration represents a premium of 22.2% over our initial investment cost, underscoring the Manager&rsquo s disciplined approach to capital recycling. IAHCC is a non-core legacy asset within our portfolio of 32 assets that the Manager had previously identified for disposal. This aligns with the Manager&rsquo s ongoing efforts to unlock value, enhance balance sheet flexibility and optimise overall capital structure. Moving ahead, we remain fully committed to delivering sustainable long-term value for our Unitholders&rdquo

 

IAHCC was acquired by First REIT on 11 December 2006 for S$21.2 million (approximately Rp.271.8 billion 2 ) as part of its initial public offering portfolio of assets. The Divestment Consideration of Rp.332.2 billion (approximately S$25.9 million) was negotiated on a willing-buyer and willing-seller basis and translates to a 0.65% premium to the average of the two independent valuations by Cushman & Wakefield VHS Pte. Ltd. (in conjunction with KJPP Firman Suryantoro Sugeng Suzy Hartomo & Rekan) and KJPP Willson & Rekan in association with Knight Frank of IAHCC of Rp.330.0 billion3 (approximately S$25.7 million) as at 30 June 2025.

 

The existing master lease agreement for IAHCC is set to expire on 31 December 2025 and would have exposed First REIT to the risk of the loss of rental income thereafter. Being a 31-year-old hospitality asset, IAHCC will also require increasing capital expenditure to maintain and upkeep the property for sustained appeal. The Proposed Divestment, therefore, comes at an opportune time for capital recycling.

 

After taking into account the estimated fees and expenses relating to the Proposed Divestment of approximately S$0.4 million, the net proceeds from the Proposed Divestment would be approximately S$25.5 million. This may be used to repay debt, redeem perpetual securities and/or fund general corporate and working requirements.

Property is a non-core legacy asset within the healthcare-focused Reit&rsquo s portfolio that was already identified for disposal

 

[SINGAPORE] First Real Estate Investment Trust (Reit) has agreed to divest its property, Imperial Aryaduta Hotel & Country Club, for 332.2 billion rupiah (S$26 million), its manager said on Friday (Oct 17).

 

The buyers are indirect wholly owned subsidiaries of Indonesian property player Lippo Karawaci.

 

The manager said the divestment consideration translates to a 0.65 per cent premium to the average of two independent valuations that came to 330 billion rupiah.

 

It also represents a premium of 22.2 per cent over its initial investment cost, said Victor Tan, executive director and chief executive officer of the manager.

 

Tan noted that the property is a non-core legacy asset within the healthcare-focused Reit&rsquo s portfolio of 32 assets, and that the manager had previously identified it for disposal.

 

The property was acquired by First Reit in 2006 for S$21.2 million as part of its portfolio of assets for its initial public offering. 

 

Its existing master lease agreement is set to expire on Dec 31, 2025, and would have exposed the Reit to the risk of the loss of rental income thereafter, noted the manager.

 

It will also require increasing capital expenditure to maintain and upkeep the property for sustained appeal, as it is a 31-year-old hospitality asset.

 

&ldquo The proposed divestment, therefore, comes at an opportune time for capital recycling,&rdquo the manager said.

 

Siloam International Hospitals expresses intent to acquire First Reit&rsquo s Indonesia hospital portfolio

Net proceeds from the proposed divestment would amount to S$25.5 million, and may be used to repay debt, redeem perpetual securities and/or fund general corporate and working requirements, it added.