First Reit to introduce scrip dividend scheme for distribution

First Real Estate Investment Trust (First Reit) is establishing a distribution reinvestment plan that will give unitholders the option to receive distributions in new units in lieu of cash.

This will enable unitholders to increase their holdings without incurring additional transactional costs such as brokerage fees, stamp duties and other related costs.

The scheme may be applied from time to time to any distribution declared by First Reit as the manager, Bowsprit Capital Corporation, may determine.

Unitholders may elect to participate in respect of all or part of their unitholdings.

Bowsprit chief executive officer Ronnie Tan said the scheme will give unitholders the flexibility of expanding their holdings in First Reit.

"It is also beneficial to First Reit as the issue of new units in lieu of cash distributions will serve to enlarge First Reit's capital base and the cash retained thereof will strengthen our working capital to fund future growth and expansion," he added.