First Reit DPU for third quarter rises 3%

SINGAPORE - First Real Estate Investment Trust (First Reit) reported a rise in distribution per unit (DPU) on the back of revenue boosted by rentals from a hospital acquired last year and contributions from Indonesia and Singapore properties.

DPU for the three months ended Sept 30 rose 3.0 per cent compared to the corresponding period a year ago, to 2.08 cents.

Income available for distribution rose 6.2 per cent to S$15.6 million, and net property income grew 6.8 per cent to S$25 million.

Gross revenue rose 6.1 per cent to S$25.3 million.

This was because of rental income contribution from Siloam Sriwijaya, a hospital acquired in December 2014, and a higher contribution from Indonesia and Singapore properties, First Reit's manager, said in a statement on Tuesday.

Gross revenue for the nine months to Sept 30 rose 8.2 per cent compared to the corresponding period a year ago, to S$75 million.

Earnings per unit for the three months was 1.91 cents, up from 1.79 for the corresponding period a year ago. Net asset value per unit was 102.02 cents as at Sep 30, up from 101.81 cents as at Dec 31 2014.

The statement said the Reit continues to be presented with strong acquisition opportunities in Indonesia as its Sponsor, PT Lippo Karawaci Tbk has been expanding its healthcare footprint in Indonesia and currently owns more than 40 hospitals there. The Reit has the first right of refusal to properties PT Lippo Karawaci Tbk owns and is willing to sell.

Dr Ronnie Tan, Chief executive officer of the Reit manager, said: "To continue with our growth trajectory, the Trust plans to embark on our first asset enhancement initiative in Indonesia with the Siloam Hospitals Surabaya. This will optimise the value of existing asset and enhance the returns to our unitholders."

jkoh@sph.com.sg