Hospital contributions, higher rents help lift First Reit's DPU

Contributions from hospitals in Indonesia and higher rents helped First Real Estate Investment Trust (First Reit) lift its distribution per unit (DPU) in the first quarter.

DPU edged up from 2.14 cents last year to 2.15 cents. The increase came as income available for distribution for the healthcare Reit grew 1.8 per cent to $16.9 million in the three months to March 31, from the previous year.

Gross revenue rose 5.8 per cent to $28.7 million, due to contributions from Indonesian hospitals that were acquired late last year.

It also reaped higher rental income from existing properties in Indonesia and Singapore. Net property income rose as a result, up 5.8 per cent to $28.4 million from the same period last year.

Earnings per unit were 1.96 cents, up from 1.91 cents a year earlier.

Net asset value per unit was 101.4 cents as of March 31, compared with 101.47 cents as of Dec 31, 2017.


    $28.7 million (+5.8%)
    $28.4 million (+5.8%)
    2.15 cents (+0.5%)

Mr Victor Tan, chief executive of Reit manager Bowsprit, said: "Our long-term strategy of making yield-accretive acquisitions has allowed the trust to grow its returns steadily over the years." First Reit's portfolio includes 20 properties in Indonesia, Singapore and South Korea.

The manager noted that demand for private healthcare in Indonesia continues to rise with the growing nationwide adoption of the national health insurance scheme.

"As such, First Reit remains well positioned for further growth, with a strong acquisition pipeline of around 40 hospitals in Indonesia from its sponsor, PT Lippo Karawaci," it said.

First Reit units ended unchanged at $1.37 yesterday.

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A version of this article appeared in the print edition of The Straits Times on April 18, 2018, with the headline Hospital contributions, higher rents help lift First Reit's DPU. Subscribe