First REIT's property in Singapore, Pacific Healthcare nursing home in Bukit Merah (Photo: REITsWeek)First REIT's property in Singapore, Pacific Healthcare nursing home in Bukit Merah (Photo: REITsWeek)

Singapore-listed health care REIT, First REIT, announced on 14 July that its has achieved a distribution per unit (DPU) of 2.2 Singapore cents for its 2Q 2016, an increase of 1.9% compared to the 2.07 cents paid in 2Q 2015.

This came on the back of healthier gross revenue and net property income figures that grew by 6.5% and 6.9% to SGD26.6 million and SGD26.3 million respectively.

Amount distributable for the period also increased by 5.8% to SGD16.24 million.

First REIT has attributed the healthier numbers to contributions from its Kupang property, comprising of Siloam Hospitals Kupang & Lippo Plaza Kupang, which was acquired in December 2015.

The REIT’s gearing is currently 34% but this is expected to be lowered to 30% due to the recent issuance of subordinated perpetual securities that will be used to pay off some loans, and expand debt headroom for acquisitions.

First REIT has pointed to Indonesia’s ageing population and a national health insurance scheme as factors that will continue to underpin demand for private health care facilities in the future.

“First REIT will continue to keep a lookout for yield-accretive acquisitions in the region to boost growth, particularly in Indonesia where its Sponsor, PT Lippo Karawaci Tbk, continues to expand its healthcare portfolio to the current strong pipeline of 43 hospitals for potential acquisition”, said the REIT.

Book closure date has been set on 25 July 2016 at 5.00 p.m. while ex-dividend date is 21 July 2016 at 9.00 a.m. Payment of dividends will take place on 26 August 2016.

Units of First REIT last changed hands on the Singapore Exchange at SGD1.30 before all securities were suspended from trading on the bourse around mid-day do to a technical glitch.

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.