Category: FirstREIT
First Reit – BT
SINGAPORE – First Real Estate Investment Trust (First Reit) on Monday said that it has secured a three-year $70 million (US$47 million) multi-currency transferable loan facility from OCBC Bank.
The primary purpose of the loan is to refinance the Reit’s outstanding bank loans of $50.8 million, the healthcare Reit said. The balance will be used for funding the redevelopment of its Adam Road Hospital and for possible acquisitions in the future.
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.
First Reit – BT
FIRST Real Estate Investment Trust (First Reit) yesterday reported net distributable income of $5.3 million for the third quarter ended Sept 30, 2008 – 12.4 per cent more than a year ago.
This was driven by a 7.4 per cent year-on-year hike in gross revenue to $7.6 million in Q308. Higher rentals from four Indonesian properties acquired in 2006 and rentals from another four local properties bought last year contributed to the revenue increase.
To be paid out on Nov 28, distribution per unit (DPU) for the healthcare trust in Q308 was 1.92 cents, 0.2 cent more than in the same period last year. This translates to an annualised DPU of 7.60 cents. Based on the closing price of 39.5 cents on Oct 17, the distribution yield stands at 19.2 per cent.
‘In today’s challenging economic environment around the world, we remain optimistic that the demand for quality healthcare will continue to grow,’ said Ronnie Tan, CEO of First Reit manager Bowsprit Capital Corporation Ltd.
‘Healthcare tends to be a resilient sector – everyone still has to look after his health in good or bad times. Moreover, the aging population and its related diseases will continue to provide opportunities for healthcare services.’
First Reit’s portfolio comprises eight properties in Singapore and Indonesia. According to the trust, revenues are derived from long- term leases which are denominated in Singapore dollars and have no provision for downward rental revisions.
Looking ahead, First Reit said that it will focus on improving the income-generating capacity of its existing healthcare properties. It will enhance assets and work with tenants to continually upgrade healthcare services.
While the trust continues to have headroom for more acquisitions (with debt-to-property valuation ratio standing at 15.6 per cent), Dr Tan said: ‘We will continue to exercise prudence in assessing the attractiveness, timing and sequence of future acquisitions.’
The manager expects First Reit to continue performing well for the rest of the financial year. The trust’s unit price ended 1.5 cents higher yesterday at 41.5 cents.
First Reit – BT
By LYNETTE KHOO
First REIT said on Monday it has signed an agreement to buy a healthcare logistics and distribution centre in Singapore for S$42 million.
This marks its first acquisition of a healthcare logistics and distribution centre and its fifth asset in Singapore, lifting its assets under management by 13 per cent to S$368 million.
The acquisition is expected to be completed three months after the temporary occupation permit (TOP) date, slated to be in July 2009.
Upon completion, First REIT will lease the centre back to the vendor Tech-Link Storage Engineering for six years at a commencement rental income of $3.23 million per annum with a built-in annual rental escalation and an option for Tech-Link to renew the lease for another seven years.
This is expected to provide an incremental annualised distribution per unit of S$0.33.
FirstREIT – BT
First Reit’s Q2 DPU rises 15.8% to 1.91 cents
FIRST Real Estate Investment Trust (First Reit) said yesterday that its distributable amount for the second quarter ended June 30 rose 16.1 per cent to $5.2 million from a year earlier.
This translates to distribution per unit (DPU) of 1.91 cents, up 15.8 per cent, said the Reit’s manager, Bowsprit Capital Corporation.
For the half-year ended June 2008, First Reit’s distributable amount and DPU were $10.26 million and 3.76 cents respectively.
Based on annualised DPU of 7.62 cents and a unit closing price of 70.5 cents on July 18, First Reit’s distribution yield is 10.81 per cent – one of the highest among Singapore Reits, stocks and government bonds, Bowsprit noted. The units closed half a cent higher yesterday at 72 cents.
Driven by rent increases from its four Indonesian properties, as well as rental income from its four Singapore properties acquired in 2007, First Reit’s gross revenue rose 15 per cent in Q2 to $7.5 million, lifting its half-year gross revenue 19.3 per cent to $15 million.
First Reit is Singapore’s first healthcare Reit. It aims 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 that will provide consistent, sustainable returns to unit holders.’
Apart from portfolio expansion, First Reit intends to improve the income-generating capacity of its existing healthcare properties through asset enhancement and by working with tenants to upgrade services.
Despite current uncertain economic conditions, Bowsprit said that it is ‘optimistic’ that First Reit will perform well in the second half of the year, as its revenue is largely derived from long-term rental leases. The current economic environment is also an opportunity for making better acquisitions.