This translates to a distribution per unit (DPU) of 1.91 Singapore cents, up 15.8 per cent, said Bowsprit Capital Corporation, the manager of the Reit.

For the half year ended June 2008, First Reit’s distributable amount and DPU are $10.26 million and 3.76 cents, respectively.

Based on its annualised DPU of 7.62 cents and the closing price of 70.5 cents on July 18, First Reit’s distribution yield is 10.81 per cent, one of the highest amongst Singapore Reits, Singapore stocks and government bonds, Bowsprit noted. The units closed yesterday at xxxx cents.

Driven by rental increases from its four Indonesian properties as well as the rental income generated from its four Singapore properties acquired in 2007, First Reit’s gross revenue in the second quarter rose 15 per cent $7.5 million, lifting its half-year gross revenue by 19.3 per cent to $15.0 million.

First Reit is Singapore’s first healthcare reit. It is aiming to raise assets under management (AUM) to $500 million by 2009 from the current $326 million. ‘First Reit will continue to seek opportunities in the region including Singapore, Indonesia and China to raise its AUM,’ said Bowsprit. ‘We have been selective in our acquisitions as we want to ensure that our portfolio consists of only quality and good yielding healthcare assets which will provide consistent, sustainable returns to unitholders.’

Apart from portfolio expansion, First Reit intends to improve on the income generating capacity of its existing healthcare properties through asset enhancement initiatives and working with its tenants to continually undertake upgrading of healthcare services. Despite the current uncertain economic conditions, Bowsprit said it remains ‘optimistic’ that First Reit will continue to perform well in the second half of the year as its revenues are largely derived from long-term rental leases. The current economic environment is also an opportunity for making better acquisitions. — Wong Weikong, BT Newsroom