First Reit Q3 DPU falls to 1.90 cents

FIRST Real Estate Investment Trust (First Reit) reported third-quarter distributable income of $5.22 million, versus $5.26 million a year earlier, its manager Bowsprit Capital Corporation said yesterday.

Distribution per unit (DPU) for Q3 to Sept 30 was 1.90 cents, compared with 1.92 cents in the previous corresponding period.

Based on First Reit’s closing price of $0.715 on Oct 20, and annualised DPU of 7.62 cents, yield was healthy at 10.7 per cent for Q3, Bowsprit said.

The healthcare Reit’s gross revenue and net property income remained stable at $7.6 million and $7.5 million respectively.

Bowsprit chief executive Ronnie Tan said: ‘We have seen stronger occupancy at our three Indonesians hospitals, as more patients stayed back to seek medical care instead of travelling abroad.

‘Continuing growth in this sector will provide an upside potential for First Reit as our Indonesian assets enjoy a variable rental growth component in addition to annual escalation.’

In Singapore, demand for private nursing care continues to grow steadily as the population ages, Mr Tan said.

First Reit said that its balance sheet remains strong and its gearing of 15.6 per cent is significantly lower than the regulatory limit of 35 per cent.

The Reit has received approval from the authorities for asset enhancement works at its Adam Road Hospital, expected to start soon. Extension works are also proposed at Lentor Residence.

‘First Reit will continue its ongoing review of the financial attractiveness of various projects in the pipeline, such as the Tech-Link healthcare logistics and distribution centre in Singapore that received temporary occupation permit on Sept 2, 2009,’ Bowsprit said.

First REIT’s 2Q 2009 distributable income up 1.5% to S$5.3 million
 DPU for the period increased 0.5% to 1.92 cents per unit
 Annualised DPU of 7.66 Singapore cents translates to distribution yield of 11.3%
 Resilient revenue structure
 Low debt-to-property valuation ratio at 15.6%

SINGAPORE – 23 July 2009 – Bowsprit Capital Corporation Limited (“Bowsprit”), the Manager of First Real Estate Investment Trust (“First REIT”), Singapore‟s first healthcare real estate investment trust, today announced that its distributable income for the three months ended 30 June 2009 (“2Q 2009”) rose 1.5% to S$5.3 million.

The latest quarterly results confirm First REIT‟s resilient rental revenue structure. First REIT‟s distribution per unit (“DPU”) also rose 0.5% to 1.92 Singapore cents. Based on its closing price of S$0.675 on 21 July 2009 and the annualised DPU of 7.66 Singapore cents, First REIT registered a distribution yield of 11.3% at the end of the period.

First Reit Q1 distributable income up 2.5%

INDICATING the resilience of the healthcare sector amid hard times, First Reit emerged from its first quarter in positive territory.

Singapore’s first healthcare real estate investment trust posted a 2.5 per cent year-on-year climb in distributable income to $5.2 million and a 1.6 per cent rise in distribution per unit (DPU) to 1.88 cents.

‘Based on its annualised DPU of 7.62 cents and the closing price of 56 cents on April 21, First Reit achieved a distribution yield of 13.6 per cent,’ said First Reit. This compares with 10.9 per cent in Q1 2008.

Although gross revenue increased 0.4 per cent to $7.4 million, net property income dipped 0.1 per cent to $7.3 million as a result of the commencement of capital expenditure provision of about $31,000 for repair and replacement works for four Indonesian properties, said First Reit.

Despite the current economic situation and challenges faced by many Reits in refinancing, First Reit recently secured a three-year $70 million multi-currency transferrable term loan facility (MCTLF) from OCBC.

This will be used to refinance First Reit’s outstanding bank loans of $50.8 million, with the balance for funding the redevelopment of Adam Road Hospital and possible future asset acquisitions.

Although interest rate is higher for this MCTLF, the term loan facility will provide First Reit with greater flexibility to improve its income generating capacity via further asset enhancements and working with its tenants to continually upgrade services.

Looking ahead, First Reit does not expect its performance to be significantly affected by the current economic situation due to its resilient trust structure which is firmly grounded by long-term leases with stable rentals in Singapore dollars with no currency risks and downward revisions.

First Reit’s CEO Ronnie Tan said: ‘Healthcare services are to a certain extent, recession-proof, as patients continue to seek medical care whether in good or bad times. Our hospitals in Indonesia continue to grow at double digit rates for 2008 despite the financial crisis. We believe this positive trend will benefit us.’

First Reit Q1 DPU up 1.6%

First Real Estate Investment Trust (First Reit), Singapore’s first healthcare real estate investment trust, reported on Thursday further growth in distributable income for the three months ended March 31, 2009.

Distributable income rose 2.5 oer cent to $5.2 million (US$3.5 million) while distribution per unit (DPU) rose 1.6 per cent to 1.88 cents. Payout was 100 per cent of distributable income.

Based on its annualised DPU of 7.62 cents and the closing price of $0.56 on Tuesday, First Reit said it achieved a distribution yield of 13.6 per cent.

‘First Reit remains committed to maintain an annual 100 per cent distribution payout,’ it added.