A newly acquired property helped boost the numbers at First Real Estate Investment Trust (First Reit) in the first quarter.
Distribution per unit (DPU) came in at 2.11 cents for the three months to March 31, up 2.4 per cent from the same period a year ago.
This was supported by gross revenue rising 7.1 per cent to $26.5 million and distributable income gaining 6.2 per cent to $16.2 million.
Net property income rose 8.1 per cent to $26.2 million.
Dr Ronnie Tan, chief executive of the Reit manager, said this was the seventh consecutive rise in DPU since First Reit achieved a record DPU in the second quarter of 2014.
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AT A GLANCE
Gross revenue: $26.5 million (+7.1%)
Net property income: $26.2 million (+8.1%)
Distributable income: $16.2 million (+6.2%)
Distribution per unit: 2.11 cents (+2.4%)
Turnover growth came mainly from the contribution of Siloam Hospitals Kupang & Lippo Plaza Kupang, which the Reit acquired in December.
Property operating expenses fell by 41.9 per cent to $289,000, mainly due to the lower expenses incurred for Sarang Hospital. This was partly offset by land title renewal costs for an Indonesia property.
First Reit, which has properties in Indonesia, Singapore and South Korea, 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.
It operates Siloam Hospitals Purwakarta and Siloam Hospitals Bali in Indonesia and Pacific Healthcare Nursing Home @ Bukit Merah among other properties.
It also noted that economic growth in Indonesia picked up speed in the last quarter of 2015, driven by government spending on infrastructure.
The firm added that Indonesia's central bank cut its main interest rate for the third consecutive month in March as the rupiah strengthened.
It also said it is acquiring an integrated development in Yogyakarta comprising a hospital component and retail mall component.
First Reit will acquire the hospital component at $40.8 million, which will boost its portfolio to 18 properties and strengthen its asset base by 3.15 per cent to $1.31 billion.
First Reit units closed 0.5 cents down at $1.25 yesterday. The results were released after the market closed.
