First REIT reports 2Q19 net property income slipped

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 Monday its second quarter net property income slipped 0.6 percent on-year to S$28.34 million, mainly on higher expenses for the South Korea and Indonesia properties.

Rental and other income for the quarter ended 30 June rose 0.2 percent on-year to S$28.97 million, the REIT said in a filing to SGX.

The distribution per unit (DPU) was 2.15 Singapore cents for the quarter, unchanged on-year, the filing said.

Property operating expenses rose 52.2 percent in the second quarter to S$647,000, the REIT said.

For the first half, First REIT reported net property income of S$56.37 million, down 1.0 percent on-year, on rental and other income of S$57.64 million, nearly flat on-year. The DPU for the first half was 4.30 Singapore cents, unchanged on-year, the filing said.

In its outlook, First REIT was upbeat.

“Despite the global economic environment, the healthcare market is a resilient sector and the demand for quality healthcare services continues to rise in Indonesia and the rest of Asia,” the REIT said.

“First REIT will continue to look for accretive acquisition opportunities from third parties, or from the pipeline of healthcare assets from its sponsors PT Lippo Karawaci Tbk and OUE Lippo Healthcare Limited, to grow its portfolio to maximize returns to unitholders,” the filing said.

First REIT’s portfolio includes 20 assets, with one hospital in South Korea, three nursing homes in Singapore, and the remainder based in Indonesia.

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