New properties help boost First Reit's Q2 results

First Reit's Siloam Hospitals Purwakarta in West Java. The reit's Indonesian properties helped improve its second quarter results.
First Reit's Siloam Hospitals Purwakarta in West Java. The reit's Indonesian properties helped improve its second quarter results. PHOTO: FIRST REIT

First Reit received a boost in its second-quarter results from recently acquired Indonesian hospital Siloam Sriwijaya, and greater contributions from Indonesia and Singapore properties.

The reit, which owns health- care-related properties in Indonesia, Singapore and South Korea, yesterday posted a distribution per unit (DPU) of 2.07 cents for the three months ended June 30.

This was 3.5 per cent higher than a year earlier, and a record DPU for the reit, its manager Bowsprit Capital Corporation said.

First Reit's properties here include the Pacific Healthcare Nursing Home@Bukit Merah and nursing home The Lentor Residence.

Distributable income grew 7.2 per cent to $15.4 million for the quarter. Gross revenue rose 8.5 per cent to $25 million for the quarter, while net property income rose 8.3 per cent to $24.6 million from the previous year.

  • AT A GLANCE

  • GROSS REVENUE:
    $25 million(+8.5%)

  • DISTRIBUTABLE AMOUNT:
    $15.4 million (+7.2%)

  • DISTRIBUTION PER UNIT:
    2.07 (+3.5%)

For the six months ended June 30, gross revenue rose 9.3 per cent to $49.7 million and net property income rose 8.8 per cent to $48.9 million, while distributable income increased 7.3 per cent to $30.7 million.

The growth was partly owing to a full quarter contribution from First Reit's latest property Siloam Sriwijayam, which was acquired in December, and higher contributions from its Indonesia and Singapore properties, said Bowsprit.

Bowsprit chief executive Ronnie Tan said: "I am heartened that the trust has been able to deliver record DPU quarter after quarter, buoyed by our strategic, yield-accretive acquisitions of high quality hospitals over the last few years."

He added that its assets-under-management are $1.17 billion, which has grown at a compound annual growth rate of 20.1 per cent since the reit listed in 2006.

Dr Tan said: "Despite the increase in assets, with prudent capital management, the trust has also managed to keep our gearing at a healthy 32.9 per cent, below the current regulatory limit of 35 per cent." The limit will go up to 45 per cent from next year, he added.

First Reit's net asset value per unit was $1.0194 as at June 30, up from $1.0181 as at Dec 31. Its units closed 0.5 cents higher at $1.425 yesterday.

A version of this article appeared in the print edition of The Straits Times on July 21, 2015, with the headline 'New properties help boost First Reit's Q2 results'. Print Edition | Subscribe