First REIT has reported a lower distribution per unit (DPU) for the FY2024 ended Dec 31, 2024 of 2.36 cents, a 4.8% y-o-y decrease.
The 4QFY2024 DPU came in at 0.58 cents, consistent with the previous quarter, but 3.3% lower compared to 1QFY2024 and 2QFY2024’s DPU of 0.60 cents.
First REIT says that the decline was largely due to the depreciation of the Japanese yen and Indonesian rupiah against the Singapore dollar, coupled with the enlarged unit base, an 0.8% increase from the year prior, resulting from the issuance of units for payment of management fee to the manager of the REIT.
The REIT’s rental & other income dropped 5.9% y-o-y for the FY2024 to $102.2 million, and net property and other income fell 6.5% y-o-y to $98.5 million.
Distributable amount declined by 4.1% y-o-y to $49.3 million in FY202.
Likewise, the REIT says that the decline in financial performance comes from the depreciation of the Japanese yen and Indonesian rupiah against the Singapore dollar. The currency impact was partly offset by higher rental income in local currency terms from Indonesia and Singapore properties.
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The REIT’s total debt as at Dec 31, 2024 stood at $459.6 million, and its gearing ratio at 39.6%. Its weighted average term to maturity is 2.5 years, and interest cover ratio is 3.8 times.
The REIT’s weighted average lease expiry (WALE) is 10.6 years from 11 tenants.
Victor Tan, executive director and CEO of the manager says that the rental and other income for Indonesia and Singapore properties increased by 4.7% and 2.0% respectively in local currency terms while rental and other income for their Japan properties remained stable.
“First REIT’s healthcare and healthcare-related portfolio continued to demonstrate healthy underlying performance and operational strengths in FY2024. Our sustainable lease structures and 100% committed occupancy rates were the Trust’s key drivers during this year of economic uncertainties,” says Tan.
Units in First REIT closed flat at 27.5 cents on Feb 11.
