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.

To read the full article, please login or subscribe.