DPU at First REIT up by 16.4%

First reit logo First Real Estate Investment Trust (SGX: AW9U), released its 2Q 2013 results, covering 1 April to 30 June 2013, on 26th July 2013. The gross revenue for 2Q 2013 was at $20.1 million, up 43.4% from 2Q 2012. The net property income was at $19.7 million, an increase of 41.7% over last year. The distributable income jumped 26.6% $12.7 million for 2Q 2013.

The distribution per unit (DPU) came up to 1.85 cents, a 16.4% increase over the same period last year. The increase was excluding the gain on divestment of the Adam Road property and a 5.5% increase in unit base following the completion of the acquisitions of Siloam Hospitals Bali (SHBL) and Siloam Hospitals TB Simatupang (SHTS). When annualised, the DPU becomes 7.24 cents. This gives a distribution yield of 6%.

On a half-year basis, First REIT’s net property income and distributable income rose 32.6% and 23.4% to $36.8 million and $24.3 million respectively. First REIT has 100% committed occupancy for its assets. As of 30 June 2013, the gearing ratio stands at 33.4%. The net asset value is at 89.65 cents.

Dr Ronnie Tan, Chief Executive Officer of Bowsprit Capital Corporation Limited, the manager of First REIT, said, “This quarter, we are pleased to see the efforts of our recent acquisitions paying off in the form of enhanced income stream. The proposed acquisitions of SHBL and SHTS were completed in May 2013, expanding our portfolio to 14 properties and total assets-under-management to over S$1.0 billion. With the expanded portfolio, we are confident of achieving higher and steadier stream of income as well as higher capital management flexibility for financing future acquisitions.”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.