Singapore REIT

First REIT Declares DPU Of 4.15 Cents For FY 2020

January 15, 2021 – First Real Estate Investment Trust (First REIT) reported a distribution per unit (DPU) of 4.15 Singapore cents for the financial year ended 31 December 2020, on the back of income available for distribution sliding 51.2% year-on-year to S$33.4 million from the previous corresponding year of S$68.5 million.

Rental and other income for the year slipped 30.9% y-o-y to S$79.6 million, largely attributable to rental reliefs extended to all tenants in the months of May and June 2020 and a further two months extended in September and October 2020 to tenants in Indonesia, to help alleviate the strains caused by the COVID- 19 pandemic. Correspondingly, net property and other income dipped to S$77.5 million in FY 2020 from S$112.9 million in FY 2019.

As at 31 December 2020, the Trust’s gearing stood at 49.0% with interest cover at 3.6 times.

“Our FY 2020 performance is a reflection of the confluence of challenges that First REIT is facing. These include the financial stress facing our largest lessee, PT Lippo Karawaci Tbk, the upcoming refinancing hurdle where 39.8% of our debt is due in less than two months and the initial term of the master lease agreements in respect of Siloam Hospitals Surabaya, Siloam Hospitals Kebon Jeruk, Siloam Hospitals Lippo Village and Imperial Aryaduta Hotel & Country Club which will expire in December 2021. To address these challenges, we have developed a comprehensive plan to restructure, recapitalise and reposition First REIT, and we seek support from Unitholders at the upcoming extraordinary general meeting on 19 January 2021,” said Mr Victor Tan, Chief Executive Officer of the Manager.

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