First Reit's Q4 DPU rises 0.9%

First Reit's gross revenue in the fourth quarter was lifted by maiden contributions from Siloam Hospitals Buton, Lippo Plaza Buton and Siloam Hospitals Yogyakarta (above).
First Reit's gross revenue in the fourth quarter was lifted by maiden contributions from Siloam Hospitals Buton, Lippo Plaza Buton and Siloam Hospitals Yogyakarta (above).PHOTO: FIRST REIT

First Reit has posted fourth-quarter distribution per unit (DPU) of 2.15 cents, up 0.9 per cent from 2.13 cents in the same period a year earlier.

Distributable income in the three months to Dec 31 rose 1.6 per cent to $16.8 million.

Gross revenue climbed 5.8 per cent to $28.6 million, lifted by maiden contributions from Siloam Hospitals Buton and Lippo Plaza Buton acquired in October last year, and Siloam Hospitals Yogyakarta, which was acquired last month.

A full quarter's contribution from Siloam Hospitals Labuan Bajo, acquired in December 2016, also lifted the topline.

Net property income grew 4.9 per cent to $28 million.

Earnings per unit were 3.26 cents, reversing from a loss of 0.18 cent in the same quarter a year earlier.

Net asset value per unit was 101.47 cents as of Dec 31, up from 100.79 cents previously.

  • AT A GLANCE

  • GROSS REVENUE: $111 million (+3.7%)

    NET PROPERTY INCOME: $109.5 million (+3.4%)

    DISTRIBUTION PER UNIT: 8.57 cents (+1.2%)

For the full year ended Dec 31, net property income grew 3.4 per cent to $109.5 million, while gross revenue rose 3.7 per cent to $111 million.

Total DPU for the year was 8.57 cents, a gain of 1.2 per cent from 2016.

This translated to a yield of 6.2 per cent based on the closing price of $1.39 on Dec 29 last year, First Reit said.

"With the two new properties acquired in 2017, our asset size has expanded by 6.3 per cent to $1.35 billion compared to $1.27 billion in 2016," said Mr Victor Tan, chief executive of the Reit manager, Bowsprit.

"Our financial position remains strong with a stable gearing of 33.6 per cent and an interest cover of 5.5 times as of Dec 31, 2017. We have also recently secured up to $400 million in syndicated secured financing facilities, which will be used to partially refinance outstanding bank loans and fund future acquisitions," he added.

Against the stronger economic outlook and the ongoing national health insurance scheme in Indonesia, demand for better-quality private healthcare will continue to grow steadily.

First Reit remains well positioned for further growth, with a strong acquisition pipeline of 39 hospitals in Indonesia from its sponsor, PT Lippo Karawaci, said the Reit manager.

First Reit units fell one cent to $1.40 yesterday before the results were announced.

A version of this article appeared in the print edition of The Straits Times on January 18, 2018, with the headline 'First Reit's Q4 DPU rises 0.9%'. Print Edition | Subscribe