First Reit's Q1 distribution per unit rises 3.5%

SINGAPORE - Healthcare real estate investment trust First Reit started the year strong on the back of its new acquisition.

Distributable income for the three months to March 31 rose 7.4 per cent from the same period the year before to $15.3 million this year.

Distribution per unit rose 3.5 per cent to 2.06 cents.

This could be attributed to the rise in gross revenue by 10.1 per cent to $24.7 million.

Net property income climbed by 9.3 per cent to $24.2 million.

The good performance was on the back of a new acquisition. The trust acquired the Indonesian hospital Siloam Sriwijaya in December last year.

This translates to an annualised distribution per unit of 8.35 cents.

First Reit plans to continue focusing on Indonesia as its key market.

Indonesia's new government implemented the universal healthcare scheme in January last year, leading to a robust healthcare market.

The trust already owns 11 hospitals in Indonesia and plans to enhance some of them to increase their value.

"The trust will continue to look at yield-accretive acquisitions to boost our distribution and sustain our growth," said Dr Ronnie Tan, chief executive of Bowsprit, the manager of First Reit.