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 healthcare facilities landlord First REIT has recorded a DPU of 2.12 Singapore cents for its 3Q 2016, a year-on-year increase of 1.9% from the 2.08 cents posted in the corresponding period of 2015.

Gross revenue for the period came in at SGD26.9 million (USD19.4 million) while net property income was recorded at SGD26.7 million, representing increases of 6.5% and 6.3% respectively.

Correspondingly distributable income for the period came in at SGD16.3 million, an increase of 4.7% from the SGD15.6 million achieved for 3Q 2015.

The REIT has attributed the results mainly to full income contributions from Siloam Hospitals Kupang, and Lippo Plaza Kupang, which were acquired in December 2015.

“Our consistent effort in bolstering our assets-under-management which has grown at a CAGR of 18.5% since our listing in 2006 to the current SGD1.27 billion, has continued to buoy returns to unitholders quarter after quarter”, said Dr Ronnie Tan, CEO of the REIT’s manager, in statement on the results.

“With our lower gearing giving us further debt headroom for acquisitions, we will keep up our momentum in seeking yield-accretive acquisition opportunities to sustain growth, as well as explore asset enhancement initiatives to optimise the value of our existing assets”, he added.

First REIT’s aggregate portfolio leverage as at 30 September 2016 was at 30.0%, down from the 34.4% in June 2016.

The REIT has also begun asset enhancement initiatives at Siloam Hospitals Surabaya, which is expected to translate into higher rental income from 2019 onwards.

“With the improving economy, the growing ageing population and the ongoing national health insurance scheme, the healthcare sector in Indonesia is expected to continue with its growth momentum”, the REIT added.

Units of First REIT finished the trading day about 0.3% lower from its previous close on the Singapore Exchange to end at SGD1.385.

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.