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

Pan-Asian healthcare REIT, First REIT, has reported a distribution per unit (DPU) of 2.15 Singapore cents for its 2Q 2018, an increase of 0.5% from the corresponding period of the previous financial year.

The REIT, which has a portfolio of health care properties across South Korea, Singapore and Indonesia, has also managed to deliver higher revenue and distributable income figures despite a stronger USD against regional currencies, and rising interest rates.

First REIT’s gross revenue for 2Q 2018 rose 5.3% year-on-year to SGD28.9 million (USD21.2 million), while net property income (NPI) increased by 5.0% to SGD28.5 million.

The REIT’s results have been attributed mainly to contributions from its latest assets, and these are namely Siloam Hospitals Buton & Lippo Plaza Buton, and Siloam Hospitals Yogyakarta, both of which were acquired in late-2017.

Despite concerns over rising interest rates and a weakening IDR against the USD, First REIT is expected to perform relatively well over the next few quarters due to three prominent factors.

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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.