First REIT has reported a DPU of 1.2 cents for 1HFY2024 ended June, down 3.2% from the 1.24 cents recorded in the previous corresponding period due to stronger Singapore dollar against the Indonesian rupiah and Japanese yen.
In 1HFY2024, the REIT’s rental and other income dipped 3.7% y-o-y to $52 million. In local currency, rental and other income increased 4.4% y-o-y for properties in Indonesia and 2% y-o-y for nursing homes in Singapore, while nursing homes in Japan remained stable.
Net property and other income was 4.1% lower y-o-y at $50.3 million in 1HFY2024 amid higher property operating expenses. Finance costs also grew by $0.1 million to $11.3 million on interest rate risk and currency risk management.
As a result, distributable amount dipped 2.1% y-o-y to $25 million in 1HFY2024.
As at June 30, rentals outstanding from a tenant PT Metropolis Propertindo Utama (MPU) in relation to three hospital master lease agreements amounted to approximately $6.4 million.
First REIT holds a security deposit of approximately $2.2 million from MPU which comprises $1.7 million for the mall and $0.5 million for the hospitals, as well as a security deposit of approximately $3.8 million from PT Siloam International Hospitals for the hospitals.
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The REIT manager is engaging closely with MPU on repayments and there are no rentals outstanding from Siloam.
First REIT’s has a gearing of 39.5%. Interest coverage ratio was at 4 times — including distribution to perpetual securities holders, the adjusted interest coverage ratio is 3.7 times.
The proportion of debt on fixed rates or hedged is 86.6% and the all-in cost of debt is 5%. With a depreciation of the Japanese yen and the Indonesia rupiah against the Singapore dollar, the REIT’s net asset value per unit was 28.33 cents as at June 30, compared to 29.48 cents as at March 31.
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“Operationally, First REIT’s portfolio of high-quality healthcare properties continue to deliver sustainable performance in the first half of 2024. As we execute First REIT’s 2.0 Growth Strategy, we are optimistic that the trust will be able to navigate the challenging market conditions with resilience,” says the manager’s executive director and CEO Victor Tan.
Units in First REIT closed 0.5 cents higher or 2% up on July 25 at 25.5 cents.
