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 announced a DPU of 2.13 Singapore cents for its 4Q 2016, a 1.9% increase from the 2.09 cents paid in the corresponding period of 2015.

Gross revenue and net property income for the quarter saw year-on-year increases of 5.1% and 5.2% to SGD26.9 million (USD18.9 million), and SGD26.6 million respectively.

Correspondingly full-year DPU came in at 8.47 cents, 2.0% higher that the 8.3 cents reported for FY2015, and represents the REIT’s highest annual distribution since listing.

First REIT has attributed the year’s results to full-year contribution from Siloam Hospitals Kupang, and Lippo Plaza Kupang, both of which were acquired in December 2015.

“To this end, the trust has recently completed the acquisition of Siloam Hospitals Labuan Bajo in Indonesia, capping off the year with an enlarged portfolio of 18 properties, and an increased asset base of SGD1.27 billion”, said Dr. Ronnie Tan, CEO of the REIT’s manager, in a statement on the results.

“With this latest acquisition, unitholders can look forward to continued earnings growth in FY 2017”, he added.

The REIT’s gearing as at 31 December 2016 was at 31.1%, with 92.3% of its borrowings on fixed rate basis.

First REIT has indicated that it expects the Indonesian healthcare sector to remain robust in the quarters ahead in line with the country’s GDP growth, and full implementation of the national health insurance scheme.

“For First REIT, opportunities for further yield-accretive acquisitions in the healthcare sector remain strong with its right-of-first-refusal to the growing pipeline of 43 hospitals from its sponsor, PT Lippo Karawaci Tbk”, said the REIT.

Units of First REIT finished the trading day about 1.1% higher from its previous close on the Singapore Exchange to end at SGD1.295.

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.