Friday, July 27, 2012

First Reit Q2 DPU rises 22.2%

Business Times: Wed, Jul 25

HEALTHCARE real estate investment trust First Reit posted a second-quarter distribution per unit (DPU) of 1.93 cents, up 22.2 per cent from 1.58 cents a year earlier.

Distributable income grew 23.1 per cent to $12.17 million from $9.89 million for the three months ended June 30.

With an annualised DPU of 7.07 cents and a closing price of 96.0 cents on July 23, First Reit registered a distribution yield of 7.4 per cent.

Gross revenue rose 6.1 per cent to $14.03 million with the contribution of Sarang Hospital in South Korea and a higher rental income from the rest of its properties, while net property income grew 6.1 per cent as well to $13.9 million.

With a number of properties located across the region, the group will be turning its attention to the Indonesian market in the coming period.

Even as markets across Asia start showing signs of a slowdown, Indonesia has been given a nod by rating agencies. Fitch Ratings upped the country's investment grade status a notch to BBB-minus while Moody's has raised its foreign and local currency ratings to Ba1.

In Singapore, the group's five-storey extension block for The Lentor Residences is slated to be completed later this year and will be part of asset enhancement for its properties.

Earlier in May, the trust obtained a four-year $168 million transferrable term loan facility from OCBC. The company will be using $50 million to refinance existing loans with OCBC and the remaining $118 million will go into financing possible future acquisitions. The trust said it will not require short-term refinancing until 2015.

Its low debt-to-property valuation ratio of 15.9 per cent, well below the regulatory limit of 35 per cent, allows it to further expand its asset base.

"With this term loan facility and our ample headroom for further acquisitions, we will continue to look for new yield-accretive acquisitions for our portfolio with a view to raising our portfolio size to at least $1 billion in the short to medium term," said Ronnie Tan chief executive officer of Bowsprit Capital Corporation Limited, manager of First Reit.

The counter ended trading yesterday 0.5 cent higher at 96.5 cents.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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