Singapore-listed healthcare REIT First Real Estate Investment Trust (First REIT) (SGX:AW9U) announced announced a distribution per unit (DPU) of two Singapore cents for its second quarter ended 30 June 2014, representing a 8.1% increase over the same period of the preceding year.

This marks the REIT’s highest DPU yet since it was listed in December 2006 and increases its annualised DPU bby 7% to 8.05 Singapore cents. Based on its closing price of SGD1.21 on 14 July 2014, First REIT’s annualised distribution yield stands at about 6.7%.

The DPU figure comes on the back of a 13.6% increase in distributable income which came in at SGD23 million and a 14.5% growth in gross revenue which was recorded at SGD22.7 million.

Management for First REIT has attributed the results to its recently acquired hospitals in Indonesia, Siloam Hospitals Bali and Siloam Hospitals TB Simatupang which were acquired in May 2013, and partial maiden contribution from another newly acquired Indonesian facility, Siloam Hospitals Purwakarta in May 2014.

In a statement released 15 July, the REIT indicates that it does not expect any drastic changes to Indonesia’s healthcare policies due to the presidential elections and foresees demand for quality healthcare to continue rising. The REIT is also looking at a pipeline of 24 properties that can be acquired for growth but has stopped short of making any specifics on this.

Units of First REIT closed the trading day 0.4% higher on the Singapore Exchange at SGD1.22.

First REIT's Pacific Healthcare Nursing Home, Singapore
First REIT has announced its highest DPU yet at 2 Singapore cents.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.