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First Real Estate Investment Trust (First REIT) saw its distribution per unit (DPU) increase 3.0 percent year-on-year to 2.08 cents in Q3 from 2.02 cents over the same period last year.
Distributable income also climbed 6.2 percent year-on-year to S$15.6 million, while net property income rose 6.8 percent year-on-year to S$25.0 million.
Reit manager Bowsprit Capital Corporation noted that contribution from Siloam Sriwijaya, which was acquired in December 2014, as well as the higher contribution from Singapore and Indonesia properties, led to a 6.1 percent year-on-year increase in gross revenue to S$25.3 million.
On a nine-month basis, First REIT’s gross revenue and net property income increased 8.2 percent and 8.1 percent to S$75.0 million and S$73.9 million respectively. Income distributable to unitholders rose 6.9 percent to S$46.3 million.
“We are pleased to be able to deliver consistently growing DPU to our unitholders quarter after quarter, on the back of strong performance from our assets,” said Dr Ronnie Tan, Bowsprit’s Chief Executive Officer.
“To continue with our growth trajectory, the Trust plans to embark on our first asset enhancement initiative in Indonesia with the Siloam Hospitals Surabaya. This will optimise the value of an existing asset and enhance the returns to our unitholders.”
Bowsprit also revealed that the REIT is presented with strong acquisition opportunities in Indonesia as its sponsor, PT Lippo Karawaci Tbk has been actively expanding its healthcare footprint within the country with a strong pipeline of over 40 hospitals.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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