First REIT Management Limited, the manager of First Real Estate Investment Trust (First REIT), has announced a distribution per unit (DPU) of 0.58 Singapore cents for the fourth quarter of 2024, maintaining the same level as the previous quarter. However, the full-year DPU for 2024 fell by 4.8% year-on-year (YoY) to 2.36 Singapore cents. This decline is attributed to the depreciation of the Indonesian Rupiah and Japanese Yen against the Singapore Dollar, which affected the Trust’s distributable income.
Victor Tan, Executive Director and CEO of First REIT Management, highlighted the Trust’s robust performance amidst economic uncertainties. “Our sustainable lease structures and 100% committed occupancy rates were the Trust’s key drivers during this year of economic uncertainties,” he stated. Despite the currency challenges, the Trust’s healthcare and healthcare-related portfolio demonstrated strong operational performance.
The Trust’s rental and other income from properties in Indonesia and Singapore increased by 4.7% YoY and 2.0% YoY respectively in local currency terms, whilst income from Japan remained stable. The appraised valuation of First REIT’s assets stood resilient at $1.12b, supported by the strengthening of the Singapore Dollar.
Looking ahead, First REIT maintains a healthy gearing ratio of 39.6%, with 56.9% of its debt on fixed rates or hedged. The Trust’s diversified portfolio and proactive capital management continue to underpin its financial stability, despite external currency pressures.
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