FirstREIT – BT

First Reit’s Q4 distributable income up 11% to $5.3m

BACKED by higher rentals from its eight properties in Singapore and Indonesia, First Real Estate Investment Trust (First Reit) achieved an 11 per cent rise in distributable income to $5.3 million for its fourth quarter ended Dec 31, 2008.

The year-on-year rise came as gross revenue rose 4.5 per cent to $7.6 million.

Distribution per unit (DPU) for the quarter grew 10.2 per cent to 1.94 cents, from 1.76 cents for the year-ago period.

Based on its FY2008 DPU of 7.62 cents (FY2007: 6.73 cents) and the closing price of 43.5 cents on Jan 20, the distribution yield is 17.5 per cent.

The quarter saw net property income grow 4.1 per cent to $7.51 million, helped by higher rentals from four Indonesia properties acquired in 2006 and four Singapore properties newly acquired in 2007.

For the full year 2008, First Reit – which is Singapore’s first healthcare Reit – reaped net property income of $29.96 million, 12.3 per cent higher than for 2007.

But it recorded a revaluation loss on investment properties of $700,000 compared with revaluation gains of $16.83 million in 2007.

First Reit’s eight properties have a total value of $324.9 million based on a recent annual revaluation, little changed from its book value in 2007.

Bowsprit Capital Corporation, First Reit’s manager, said it is hopeful that First Reit will continue to perform relatively well in 2009.

‘First Reit is hopeful that the demand for quality healthcare, particularly in Asia, will remain relatively unaffected despite the current global recession,’ it said.