First REIT posts FY2025 DPU of 2.17 cents, down 8.1% on FX drag despite resilient healthcare portfolio and 100% occupancy
Summary:
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FY2025 Rental and Other Income slipped 1.6% to S$100.5m and Net Property and Other Income fell 1.1% to S$97.3m, mainly on Indonesian rupiah and Japanese yen depreciation and the divestment of Imperial Aryaduta Hotel & Country Club, partly offset by higher local-currency rents in Indonesia and Singapore.
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Distributable amount declined 7.1% to S$45.8m and DPU fell 8.1% to 2.17 cents as FX headwinds and a 0.8% larger unit base (management and divestment fee units) outweighed underlying rental growth.
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The S$1.02bn portfolio remains fully occupied with a 10-year WALE; Indonesian hospitals enjoyed 4.5% built-in rent escalations (and 8.0% performance-based rent at three hospitals), while Singapore and Japan nursing homes saw 2.0% rental growth in local terms.
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Balance sheet metrics show 42.1% gearing, 3.7x interest cover and 46.1% of debt fixed or hedged, with cost of debt reduced to 4.5%; First REIT is in discussions to extend/refinance loans due in 2026 and has redeemed S$33.3m of perpetual securities in January 2026.
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The manager continues a strategic review to enhance unitholder value, while managing FX risk via non-deliverable forwards and addressing c.S$6.9m of rental arrears at PT MPU (partly covered by a c.S$3.9m Siloam security deposit) through ongoing engagement under the master lease agreements.