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First Reit posts higher Q3 DPU on contributions from acquisitions
CONTRIBUTION from the Kupang Property comprising Siloam Hospitals Kupang and Lippo Plaza Kupang, acquired in December 2015, helped lift healthcare real estate investment trust First Reit's third quarter earnings.
The Reit, which owns 17 properties in Indonesia, Singapore and South Korea, on Wednesday posted distribution per unit (DPU) of 2.12 Singapore cents for the three months as at end September.
This is 1.9 per cent higher than the same period a year ago, its manager Bowsprit Capital Corporation Limited said.
Annualised DPU rose 2 per cent to 8.47 Singapore cents, compared with 8.30 Singapore cents a year ago - the actual distribution paid for FY2015.
Distributable income grew 4.7 per cent to S$16.3 million for the quarter.
Gross revenue in Q3 came in at S$26.9 million, up 6.5 per cent year on year.
Similarly, net property income went up 6.3 per cent in Q3 to S$26.6 million.
In its outlook, the Reit said Indonesia's gross domestic product (GDP) grew 5.18 per cent year-on-year in the second quarter of 2016, beating analysts' forecasts and accelerating strongly from the (downward revised) 4.91 per cent year-on-year GDP growth pace that was recorded in the preceding quarter.
"One of the key drivers for the growth was the government spending which accelerated markedly from 2.94 per cent year-on-year in Q1 2016 to 6.28 per cent year-on-year in Q2 2016. With the improving economy, the growing ageing population and the on-going national health insurance scheme, the healthcare sector in Indonesia is expected to continue with its growth momentum."