First Reit's Q2 DPU up 1.9% at 2.11 Singapore cents

FIRST Real Estate Investment Trust's (First Reit) distribution per unit (DPU) for the second quarter ended June 30, 2016, rose 1.9 per cent to 2.11 Singapore cents, lifted by contributions from properties acquired in December last year.

These were the Kupang Properties, which comprise Siloam Hospitals Kupang & Lippo Plaza Kupang.

Distributable amount was 5.5 per cent higher at S$16.24 million.

Gross revenue rose 6.5 per cent year on year to S$26.6 million mainly due to contribution from the Kupang Properties, while net property income increased 6.9 per cent to S$26.3 million.

For the half year, First Reit's net property income and gross revenue increased 7.5 per cent and 6.8 per cent to S$52.5 million and S$53.1 million respectively. The DPU for the six-month period was 4.22 cents, versus 4.13 cents a year ago.

First Reit said it will continue to keep a lookout for yield-accretive acquisitions in the region to boost growth, particularly in Indonesia where its sponsor, PT Lippo Karawaci Tbk, continues to expand its healthcare portfolio to 43 hospitals for potential acquisition.

It added: "Despite a slowdown in the Indonesian economy, the healthcare sector is expected to continue to grow steadily with demand supported by the growing aging population and the national health insurance scheme."