First REIT reports 4Q18 net property income rose nearly 2 percent on new acquisitions

Comprehensive Cancer Centre, in Central Jakarta, Indonesia, is part of First REIT's portfolio. Photo used with permission of OUE Lippo Healthcare.Comprehensive Cancer Centre, in Central Jakarta, Indonesia, is part of First REIT's portfolio. Photo used with permission of OUE Lippo Healthcare.

First REIT reported on Wednesday its fourth quarter net property income rose 1.9 percent on-year to S$28.53 million, bolstered by the contributions from new properties acquired during the past year, Siloam Hospitals Buton & Lippo Plaza Buton and Siloam Hospitals Yogyakarta (SHYG).

Gross revenue increased 2.7 percent on-year in the quarter ended 31 December to S$29.32 million, it said in a filing to SGX after the market closed on Wednesday, noting the figure included the full-quarter contribution of SHYG, which was acquired late in the fourth quarter of 2017

The distribution per unit (DPU) was 2.15 Singapore cents for the fourth quarter, unchanged from the year-ago quarter, it said.

Property operating expenses in the quarter rose 41 percent on-year to S$791,000, mainly on higher expenses at the Sarang Hospital and Indonesia properties, it said.

For the full year, net property income rose 4.5 percent on-year to S$114.39 million, while gross revenue increased 4.7 percent on-year to S$116.20 million, the filing said. The full-year DPU was 8.60 Singapore cents, up 0.4 percent on-year from 8.57 Singapore cents for 2017, it said.

The yield was at 8.7 percent, based on the full-year DPU and the unit closing price of S$0.985 on 31 December, it said.

Victor Tan, CEO of Bowsprit, the manager of First REIT, said in the statement that the results were stable and credible, with steady performance from the portfolio of 20 properties across Indonesia, Singapore and South Korea.

Tan pointed to OUE and OUE Lippo Healthcare’s acquisition of Bowsprit and OUELH’s acquisition of a 10.6 percent stake in First REIT as helping the REIT tap opportunities in the Asia Pacific region’s growing demand for affordable healthcare.

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