First Reit Q3 DPU down 53% to 1.01 Singapore cents

THE distribution per unit (DPU) of First Reit fell 53 per cent to 1.01 Singapore cent for the third fiscal quarter ended September, compared to 2.15 cents a year ago.

This brings the Reit's DPU for the first nine months of the year to 3.31 cents, some 48.7 per cent lower than 6.45 cents in the year-ago period.

Distributable income for the period fell 52.3 per cent to S$8.2 million from S$17.2 million last year, due to lower management fees payable in units, as well as a one-month rental relief extended to Indonesian tenants to "alleviate the economic distress resulting from the continuing impact of the Covid-19 pandemic".

The total sum in rental relief was S$18.9 million. First Reit said the relief is intended to help its tenants tide over the second half of the year, amid the continuing significant impact of the pandemic on tenants' revenues.

Contributions from the Reit's rental and other income, and net property and other income segments fell by 28 per cent and 28.4 per cent respectively. These declines were attributable primarily to the one-month relief for its Indonesian tenants.

The Reit said the declines in income were also primarily attributable to the one-month rental relief that was extended to its Indonesian tenants.

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Apart from a fall in income, First Reit's unit base rose by 1.5 per cent to 807.21 billion shares, up from 797.32 billion in the third quarter last year.

The latest quarterly distribution will be paid out to unitholders on Dec 23, after the Reit's book closure on Nov 19.

First Reit said the "supportive and consolidative budget" that has been approved by the Indonesian Parliament will allocate some 169.7 trillion rupiah (S$16.16 billion) to healthcare in the upcoming year; 18 trillion rupiah will go towards procuring a coronavirus vaccine for 60 per cent of the country's population to create herd immunity.

The Reit said it will continue to work with its tenants to ensure that all its healthcare properties in Indonesia, Singapore and South Korea operate under strict precautionary measures.

Units in First Reit closed at S$0.44 on Tuesday, up two cents or 4.8 per cent, prior to the announcement of the results. (see amendment note)

Amendment note: An earlier version of this article said that units in First Reit closed at S$0.44 on Wednesday, when it was in fact on Tuesday.