Singapore-listed healthcare REIT, First REIT, announced on 18 April that it has achieved a distribution per unit (DPU) of 2.11 Singapore cents for its 1Q 2016, an increase of 2.4% as compared to the 2.06 cents delivered in 1Q 2015.

Distributable income for the period which ended on 31 March 2016 was SGD16.2 million, a 6.2% increase over the SGD15.26 million achieved in the corresponding period of 2015.

The distribution numbers came on the back of a 7.1% and 8.1% increase in gross revenue and net property income that came in at SGD26.50 million and SGD26.20 million respectively.

“This is First REIT’s seventh consecutive rise in DPU since achieving our record DPU of 2.00 Singapore cents in 2Q 2014”, said Dr Ronnie Tan, CEO of the REIT’s manager. “The growth was achieved on the back of new acquisitions, specifically from our latest acquisition in December 2015, the Kupang Property, comprising Siloam Hospitals Kupang and Lippo Plaza Kupang”, he added.

The REIT expects recent measures by the Indonesian government, such as the lifting of a ban on foreign ownership in healthcare-related businesses, to bode well for the industry.

“This is expected to further spur the expansion of the healthcare sector, which is already seeing increasing demand for healthcare services and hospital beds with the introduction of Jaminan Kesehatan Nasional, the national health insurance scheme by the Indonesian government since 2014”, said the REIT.

“First REIT will continue to keep a lookout for acquisition opportunities in this expanding sector, backed by a strong pipeline of 44 hospitals from its Sponsor, PT Lippo Karawaci Tbk, to which it has a right-of-first-refusal”, the REIT added.

Units of First REIT finished the trading day flat from its previous close on the Singapore Exchange at SGD1.25.