First REIT has reported a distribution per unit (DPU) of 0.55 cents for the 2QFY2025 ended June 30, 8.3% lower than the DPU of 0.6 cents declared in the 2QFY2024.
This brings the REIT’s DPU for the 1HFY2025 to 1.13 cents, 5.83% lower y-o-y.
Distributable income for the six-month period fell by 4.80% y-o-y to $23.8 million.
1HFY2025 rental and other income fell by 2.88% y-o-y to $50.5 million due to the depreciation of the Indonesian rupiah (IDR) and Japanese yen (JPY) against the Singapore dollar (SGD). The decline was offset by higher rental income from the REIT’s assets in Indonesia and Singapore.
In local currency terms, rental and other income for First REIT’s Indonesia and Singapore properties rose by 5.5% and 2% y-o-y, respectively, while rental and other income from its Japan properties remained stable.
Property operating expenses fell by 9.33% y-o-y to $1.5 million.
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Accordingly, net property and other income fell by 2.71% y-o-y to $48.9 million.
Finance costs fell by 3.86% y-o-y to $10.9 million due to lower interest rates.
For the 1HFY2025, the REIT reported a total comprehensive loss attributable to unitholders of $14.3 million, mainly due to currency translation differences. During the period, the loss stood at $37.4 million from a loss of $32.5 million.
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Its net asset value (NAV) per unit as at the end of June stood at 26.75 cents.
As at June 30, the REIT has an occupancy rate of 100%, unchanged y-o-y, while its weighted average lease expiry (WALE) stood at 10.1 years, down from 11 years as at June 30, 2024.
As at the same period, gearing stood at 41.2% up from 39.6% as at Dec 31, 2024, and 39.5% as at June 30, 2024. The REIT’s interest coverage ratio, however, stood at 3.7 times, up from 3.6 times six months ago, but lower than the ratio of 4.0 times as at June last year.
The percentage of debt that is fixed or hedged stood at 56.2% as at June 30, compared to 56.9% as at Dec 31, 2024 and 86.6% as at June 30, 2024.
As at June 30, cash and cash equivalents stood at $35.5 million.
To Victor Tan, executive director and CEO of the manager, the REIT reported a “resilient” set of results despite macroeconomics externalities.
However, the “volatility and depreciation” of the IDR against the SGD, which moderated the REIT’s 1HFY2025 distributable income, “necessitates our continued focus on actively managing foreign currency risks and our capital management strategy,” he adds.
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In its outlook statement, the REIT believes currency volatility is expected to remain a “persistent theme” across Asia with currencies remaining influenced by broader macroeconomic externalities, including ongoing global trade uncertainties and domestic fiscal challenges.
“The IDR has faced significant depreciation since the start of 2025, prompting Bank Indonesia’s recent intervention in June 2025. Similarly, the JPY has continued to weaken amid a wide US–Japan interest rate gap, with the Bank of Japan signalling caution over additional rate hikes,” says the REIT in its July 29 statement.
The REIT’s DPU will be paid on Sept 25. The ex-distribution date is at 9am on Aug 13.
Units in First REIT closed flat at 28 cents on July 29.
