First Reit's Q4 DPU rises 0.9% after hospital acquisitions

FIRST Reit has posted fourth-quarter distribution per unit (DPU) of 2.15 Singapore cents, up 0.9 per cent from 2.13 Singapore cents in the same period a year earlier.

Distributable income in the three months to Dec 31 rose 1.6 per cent to S$16.8 million.

Gross revenue climbed 5.8 per cent to S$28.6 million, lifted by maiden contributions from Siloam Hospitals Buton and Lippo Plaza Buton acquired in October 2017, and Siloam Hospitals Yogyakarta which was acquired in December 2017.

A full quarter's contribution from Siloam Hospitals Labuan Bajo, acquired in December 2016, also lifted the topline.

Net property income grew 4.9 per cent to S$28 million.

Earnings per unit was 3.26 Singapore cents, up from a loss per unit of 0.18 Singapore cents in the same quarter a year earlier.

Net asset value per unit was 101.47 Singapore cents as at Dec 31, up from 100.79 cents as at Dec 31 2016.

For the full year ended Dec 31, net property income grew 3.4 per cent to S$109.5 million while gross revenue rose 3.7 per cent to S$111 million.

Total DPU for the year was was 8.57 cents, a gain of 1.2 per cent from 2016.

This translated to a yield of 6.2 per cent based on the closing price of S$1.39 on Dec 29, 2017, First Reit said.

Victor Tan, chief executive of the Reit manager, Bowsprit, said: "With the two new properties acquired in 2017, our asset size has expanded by 6.3 per cent to S$1.35 billion compared to S$1.27 billion in 2016 . . .

"Our financial position remains strong with a stable gearing of 33.6 per cent and an interest cover of 5.5 times as at Dec 31, 2017. We have also recently secured up to S$400 million in syndicated secured financing facilities, which will be used to partially refinance outstanding bank loans and fund future acquisitions."

Results were posted after market close. First Reit units fell one cent or 0.71 per cent to S$1.40 on Wednesday.