Decline in rental and other income was mainly due to the depreciation of Indonesian Rupiah against the Singapore dollar, which was partly offset by higher rental income in local currency terms from Indonesia and Singapore properties.
As at Sept 30, the proportion of debt on fixed rates or hedged was 49.5%. Gearing ratio rose slightly to 41.4% and interest coverage ratio remained at 3.8 times.
First REIT has no refinancing requirements until May 2026 and an option to extend its term loan for two years.
First REIT says that as at Sept 30, the rental outstanding from PT Metropolis Propertindo Utama (PT MPU) amounted to $6 million, which has been progressively been paid off since July 2025.
See also: Marco Polo Marine's FY2025 earnings up 169.7% y-o-y on one-off gains and higher chartering income
First REIT announced the proposed divestment of Imperial Aryaduta Hotel & Country Club (IAHCC) for a divestment consideration of IDR332.2 billion (approximately $25.9 million).
IAHCC is a 31-year-old hospitality asset completed in 1994, comprising a hotel and country club with recreational and F&B facilities. The divestment unlocks value, enhances balance sheet flexibility and optimises overall capital structure, the REIT notes.
Net proceeds may be used to repay debt, redeem perpetual securities and/or fund general corporate and working requirements.
Units in First REIT closed 0.5 cents lower or 1.754% down at 28 cents on Oct 28.
