DPU up a Healthy 14% at First REIT

First reit logoFirst Real Estate Investment Trust (SGX: AW9U), or First REIT for short, Singapore’s first healthcare REIT, released its latest quarter earnings after market close on Friday. First REIT’s portfolio consists of 14 properties located in Indonesia, Singapore and South Korea.

In the fourth quarter of 2013 (4Q 2013), the gross revenue and net property income grew 48.2% and 41.6% to S$22.8 million and S$21.7 million respectively. The growth was mainly because of contributions from two newly acquired properties in Indonesia –Siloam Hospitals Bali and Siloam Hospitals TB Simatupang. The distribution per unit (DPU) increased 14.5% year-on-year to 1.97 Singapore cents.

For full year 2013 (FY2013), the gross revenue and net property income rise of 44.5% and 40.1% to S$83.3 million and S$80.2 million respectively. The distribution per unit (DPU) went up 14.3% to 7.52 Singapore cents as compared to FY2012.

As of 31st December 2013, the gearing ratio of First REIT stood at 32.3% while that last year was at 26%. The net asset value was at 96.64 Singapore cents as compared to 82.72 Singapore cents in FY 2012. The occupancy of the portfolio is at 100%.

Dr Ronnie Tan, the Chief Executive Officer of the manager of First REIT, Bowsprit Capital Corporation Limited, said, “We are pleased with the Trust’s performance and growth in 2013, having achieved a number of milestones with the completion of the 5-storey extension to our Lentor Residence in Singapore, the acquisitions of two new properties in Indonesia and significantly, achieving our target asset value of over S$1 billion. These developments have enhanced our income stream and enabled the Trust to deliver stable and growing distributions to our Unitholders. Moving into 2014, we will continue to look at our Sponsor’s strong pipeline of hospitals for acquisitions, opportunities in other parts of Asia as well as potential asset enhancement initiatives with existing properties.”

First REIT last changed hands on Friday at S$1.045. This translates to a distribution yield of 7.2% and a price-to-book ratio of 1.1.