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

First REIT announced on 17 April that it has achieved a DPU of 2.14 Singapore cents for its 1Q 2017, an increase of 1.4% year-on-year from the 2.11 cents recorded in the corresponding period of 2016.

Gross revenue and net property income (NPI) increased by a similar percentage of 2.5% to SGD27.2 million, and SGD26.9 million respectively, while distributable income for the period was SGD16.6 million, up 2.4% from SGD16.2 million in 1Q 2016.

“The 1.4% growth in 1Q DPU was achieved on the back of the full quarter’s rental income contribution from Siloam Hospitals Labuan Bajo, which was acquired in December 2016”, said Dr Ronnie Tan, CEO of the REIT’s manager.

“This is our 11th consecutive quarter of DPU growth since 2Q 2014, a testament of our well-tested strategy of acquiring yield-accretive assets”, he said, adding that the REIT will continue to reinforce this strategy for FY 2017.

As at 31 March 2017, First REIT’s gearing ratio was 31.0%, with an interest cover of 5.7 times, while about 90.9% of its borrowings are on a fixed rate basis.

The REIT has indicated that it remains optimistic for the quarters ahead given support from an ongoing national health insurance scheme in Indonesia, which now allows more affluent citizens to afford private healthcare spending.

First REIT finished the trading day about 0.3% lower from its previous close on the Singapore Exchange to end at SGD1.345.

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.