First Real Estate Investment Trust (First Reit) has announced that its distributable income for the third quarter surged 125.7 percent to S$12.08 million, from S$5.35 million over the same period last year.
This was boosted by the S$8.7 million gained from the divestment of its Adam Road property, which was sold to Fortis Global Healthcare in the first quarter.
Meanwhile, the Reit’s property income for the quarter jumped 79.2 percent to S$13.47 million, while revenue surged 79.2 percent to S$13.67 million. Earnings per unit stood at 1.23 cents in Q3, compared to 1.25 cents over the same period last year.
This was mainly attributed to maiden contributions from its three new properties, Siloam Hospitals Lippo Cikarang and Mochtar Riady Comprehensive Cancer Centre in Indonesia, and Sarang Hospital in South Korea.
“With a visible pipeline from our sponsor PT Lippo Karawaci Tbk, we believe we will be able to strengthen our property portfolio in Indonesia by tapping the sustained demand for quality healthcare services as well as leveraging our sponsor’s long-term expansion plans to develop over 25 hospitals over the next five years,” said Ronnie Tan, CEO of Bowsprit Capital Corporation (First Reit’s manager).
“We have been engaging in preliminary discussions with our sponsor to acquire some of its upcoming properties to which we have a first right of refusal.”
The company also expects the “demand for nursing homes and community hospitals to rise on the back of the government’s push for improved tertiary care, which will be more pressing as the nation’s ageing population accelerates.”
With this, the trust is also making good progress on its new five-storey extension block at The Lentor Residence, which is expected to be completed by the second-half of next year.
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