First REIT Q4 DPU edges higher on hospital acquisitions

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First Real Estate Investment Trust reported a near 1 percent rise in fourth-quarter distribution per unit (DPU).

DPU rose to 2.15 Singapore cents in the three months ended December 31 compared to 2.13 Singapore cents of the preceding period.

Distributable income in the quarter was up 1.6 percent to S$16.8 million, the company said in a regulatory filing.

Gross revenue advanced 5.8 percent to S$28.6 million, underpinned by maiden contributions from Siloam Hospitals Buton and Lippo Plaza Buton acquired in October 2017, and Siloam Hospitals Yogyakarta which was acquired in December 2017, the company said.

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"With the two new properties acquired in fiscal 2017, our asset size has expanded by 6.3 percent to S$1.35 billion compared to S$1.27 billion in fiscal 2016," Victor Tan, chief executive of the REIT manager, Bowsprit, said in a statement.

"Our enlarged portfolio will not only raise the profile of the Trust, it will also enhance our overall capital management flexibility to pursue future yield accretive acquisitions to deliver increasing returns to our unitholders."

First REIT said the manager will announce the pricing of the Distribution Reinvestment Plan units to be issued on January 25.

First Real Estate Investment Trust is a healthcare real estate investment trust. The Trust invests in and owns a diversified portfolio of healthcare and healthcare-related real-estate assets in Asia.

Shares in the company were unchanged at S$1.40 on the Singapore Exchange.

This article was first published on January 18, 2018