FirstREIT – BT

First Reit Q4 DPU doubles on divestment

It’ll pay 1.93 cents per unit; gross revenue up 82%

FIRST Real Estate Investment Trust (First Reit) saw its distribution per unit (DPU) for the fourth quarter ended Dec 31, rise to 1.93 Singapore cents, up 121.8 per cent in the previous corresponding quarter.

This was helped by other gains relating to the distribution of a portion of the total gain on divestment of its Adam Road property of about $8.7 million, which was sold in Q1 last year to Fortis Global Healthcare.

The DPU is payable Feb 29.

The amount distributable rose 122.9 per cent to $12.12 million for the fourth quarter. Meanwhile, gross revenue rose 82 per cent to $13.93 million while net property income also rose 82.2 per cent to $13.77 million.

Results were lifted partly by maiden contributions from its three new properties: Mochtar Riady Comprehensive Cancer Centre and Siloam Hospitals Lippo Cikarang in Indonesia, and South Korea’s Sarang Hospital.

On a full-year basis, the Trust posted a DPU of 7.01 Singapore cents, as compared to 6.63 cents a year ago. Due to the effect of the rights issue and acquisitions made in Dec 2010, full-year 2011 DPU is not comparable to 2010 DPU.

For the full fiscal year, the amount distributable gained 105.8 per cent to $43.93 million.

Gross revenue rose 78.4 per cent to $54.01 million while net property income also rose 78.9 per cent to $53.44 million for the full year.

Earnings per unit were 3.39 cents for 4QFY11 and 8.15 cents for FY11.

As at Dec 28 last year, the total value of First Reit’s investment properties rose from $612.8 million to $618 million, following the acquisition of Sarang Hospital and the divestment of the Adam Road property.

Going forward, manager of First Reit, Bowsprit Capital Corporation, said it expects Indonesia to remain a key focus, and it sees strong potential as Indonesia’s consumption growth continues to grow, which invariably will increase the demand for quality healthcare services.

‘We have been in discussions with our sponsor PT Lippo Karawaci Tbk to acquire some of its upcoming properties on which we have a right of first refusal,’ said Bowsprit’s CEO Ronnie Tan.

On the Singapore front, Bowsprit said the nation’s ageing population and current ‘bed shortage’ will continue to drive the demand for more nursing homes and community hospitals.

As part of its asset enhancement strategy for its properties, the Trust is adding a new five-storey extension block at The Lentor Residence, which is slated for completion in the second half of 2012.

First Reit shares closed at 77 cents yesterday, up half a cent.