Corporate Digest

Published Tue, Oct 26, 2021 · 09:47 PM

First Reit

IN spite of lower costs from lower manager's fees and cheaper financing that resulted in 17.8 per cent higher distributable income for the 9 months to September, First Real Estate Investment Trust's (Reit) distribution per unit (DPU) dropped over 40 cent year on year.

The cut was largely due to the issuance of rights units in February, which diluted the DPU from 3.31 Singapore cents for the 9 months of FY2020 to 1.95 cents, including 0.65 cent for the 3 months to September and payable on Dec 17.

In its regulatory filing after trading hours to the Singapore Exchange on Oct 26, First Reit's manager, First Reit Management, reported a 2 per cent decline in rental as a result of reliefs extended to the tenants of its hotels and shopping malls to alleviate the financial impact of the pandemic.

Also, it said that net property income was 2.2 per cent lower, as property tax rebate received last year for Singapore properties to help tide through the pandemic was not given this year.

The critical restructuring of its master lease agreements for 14 Indonesia hospitals in January 2021 and recapitalisation efforts in the first quarter of 2021 will bear fruit in the coming year, as rental income will increase by at least 4.5 per cent, First Reit Management said.


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With declining infections and Indonesia's vaccination programme ongoing, the manager is confident of the demand for private healthcare services. But it cautioned that the near-term outlook continues to be challenging, particularly currency and pandemic-related risks.

First Reit units rose S$0.005 to S$0.265 when market closed on Oct 26, before this business update was released.


Lippo Malls Indonesia Retail Trust

LIPPO Malls Indonesia Retail Trust (LMIRT) reported a third-quarter distribution per unit (DPU) of 0.09 Singapore cent, up from 0.07 cent a year ago.

Income available for distribution to unitholders was S$6.9 million for the three months to Sep 30, compared with S$2 million a year ago, the manager disclosed on Tuesday.

Net property income increased 31.5 per cent to S$17.3 million while gross revenue rose 7 per cent to S$30.9 million, after including income from the newly acquired Lippo Mall Puri.

Rental revenue from Puri was however offset by the loss of income following the temporary closures of the LMIRT’s assets during the emergency public activity restrictions period in July and August.

The manager said the emergence of the Delta variant of the virus that caused a resurgence of the outbreak in Indonesia continues to impact LMIRT’s performance, as it needs to provide rental support to tenants over the next few months.

“We will also be working closely with our mall operator to actively bring in new and replacement tenants to boost the occupancy of some of the malls that were significantly impacted during this past one and half years of challenging operating conditions,” said James Liew, chief executive of the manager.

LMIRT’s gearing was 42.3 per cent as at Sep 30. The manager said it has sufficient financial resources to meet its near-term financial obligations when they fall due, with no refinancing needs until November 2022.

The counter closed at S$0.055 on Oct 26, down S$0.002 or 3.51 per cent.


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