First Reit Q3 DPU up 0.5%

FIRST Real Estate Investment Trust's (First Reit) third-quarter distribution per unit (DPU) edged up 0.5 per cent year-on-year to 2.15 Singapore cents for the three months ended Sept 30.

Gross revenue increased by 5.1 per cent to S$29.24 million, while net property income rose 5.4 per cent to S$28.94 million, lifted by contributions from its latest acquisitions, Siloam Hospitals Buton & Lippo Plaza Buton and Siloam Hospitals Yogyakarta, as well as from existing properties.

The DPU is payable on Nov 29.

Chief executive officer of manager Bowsprit Capital Corporation Victor Tan said that the proposed acquisition of Bowsprit by OUE Lippo Healthcare will be one of the Reit's growth drivers. He added: "First Reit will then be able to access a more diversified pool of assets via the right of first refusal agreements granted by both OUE Lippo Healthcare Limited and PT Lippo Karawaci Tbk for their portfolios. This will effectively expand First Reit's geographical catchment within Asia, allowing the trust to potentially pursue more yield-accretive acquisitions to deliver stable returns to our unitholders."

On Sept 18, OUE and OUE Lippo Healthcare (OUELH) announced the proposed acquisition of Lippo Karawaci's entire shareholding in Bowsprit, while OUELH will also be acquiring some 83.59 million First Reit's units - or 10.63 per cent of First Reit - from Lippo Karawaci.

Units in First Reit closed one cent higher at S$1.18 on Tuesday.