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First Reit posts 3.5% rise in DPU for Q2

SINGAPORE'S first healthcare real estate investment trust (Reit), First Reit, on Monday posted a 2.07 Singapore cent distribution per unit (DPU) for its second quarter ended June 30, 2015, a 3.5 per cent rise from the year-ago period. It is payable on Aug 28.

Distributable income for the quarter rose 7.2 per cent to S$15.4 million, from S$14.37 million in Q2 2014. Net property income rose 8.3 per cent to S$24.6 million, from S$22.7 million.

Gross revenue climbed 8.5 per cent year on year to S$25 million, lifted by earnings from Siloam Sriwijaya which was acquired last December, as well as higher contributions from the Reit's Indonesia and Singapore properties.

Ronnie Tan, CEO of the Reit's manager, Bowsprit Capital Corporation, said: "First Reit has today attained assets under management of S$1.17 billion, which has grown at a CAGR (compound annual growth rate) of 20.1 per cent since our listing in 2006. Despite the increase in assets, with prudent capital management, the trust has also managed to keep our gearing at a healthy 32.9 per cent, below the current regulatory limit of 35 per cent.

"The regulatory gearing limit will go up to 45 per cent from next year onwards following recent announcement by the Monetary Authority of Singapore. Moving forward, the trust will continue to grow our assets to maximise returns to unitholders, as well as adopt an active and prudent approach with our capital structure."