Healthcare-based First Reit posts 27% rise in Q2 distributable income to $12.7 million

FIRST Reit, Singapore's first healthcare real estate investment trust with properties in Indonesia, Singapore and South Korea, today posted a 41.7 per cent increase in net property income to $19.7 million for the second quarter.

Distributable income for the three months to June 30 jumped by 26.6 per cent to $12.7 million.

Distribution per unit (DPU) increased by 16.4 per cent to 1.85 cents despite an expanded unit base.

Gross revenue for the quarter rose 43.4per cent to $20.1 million, largely due to the contributions from the four most-recently acquired properties.

The quarter registered the full quarter contributions from Siloam Hospitals Makassar and Siloam Hospitals Manado & Hotel Aryaduta Manado, as well as the partial maiden contributions from Siloam Hospitals Bali and Siloam Hospitals TB Simatupang, which were acquired in November 2012 and May 2013 respectively.

Contributions from the newly acquired hospitals are expected to further boost First Reit's gross revenue and net property income, and the full impact of the contributions will be realised from the third quartern.

Annualised DPU gained 10 per cent to 7.24 cents. Based on closing price of $1.19 on July 25, the distribution yield works out to 6.1 per cent.

First Reit units ended the day 1.5 cents higher at $1.205.