First Reit announces DPU growth of 2.4%

SINGAPORE- First quarter distribution per unit (DPU) at healthcare real estate investment trust (Reit) First Real Estate Investment Trust (First Reit) grew owing to contribution from a newly acquired property.

DPU for the three months to March 31 was 2.11 Singapore cents, up 2.4 per cent from the same period a year ago.

Gross revenue rose 7.1 per cent to S$26.5 million and distributable income rose 6.2 per cent to S$16.2 million.

Dr Ronnie Tan, chief executive officer of the Reit manager, noted that this is the seventh consecutive rise in DPU since First Reit achieved a record DPU in the second quarter of 2014.

The revenue growth came mainly from the contribution from Siloam Hospitals Kupang & Lippo Plaza Kupang, which the Reit acquired in December last year.

First Reit noted that the Indonesian government had unveiled plans to lift the ban on foreign ownership in healthcare-related businesses.

"This is expected to further spur the expansion of the healthcare sector, which is already seeing increasing demand for healthcare services and hospital beds with the introduction of the national health insurance scheme by the Indonesian government since 2014," First Reit said in a statement.

jkoh@sph.com.sg