First REIT’s Distribution Per Unit For 1H 2020 Expected To Decline By 40% To 50%
July 21, 2020 — First REIT’s announced that they are expecting a 40 to 50% decline in their distribution per unit for the first half of 2020 from 4.30 cents recorded in first half of 2019.
First REIT’s available distribution income to unitholders for the six months ending 30 June 2020, meanwhile, is expected to decline by 40% to 50% from S$34.2 million as recorded for the corresponding period in the previous year.
First REIT’s total return after tax for 1H 2020 is expected to decline by 50% to 60% from S$30.9 million recorded in 1H 2019.
The Managers will continue with the practice of valuing First REIT’s assets once a year at the end of the financial year and any fair value gains or losses on properties will only be recorded in the full year results.
In this regard, the Managers said they would like to highlight that there may be uncertainty relating to the carrying amounts of First REIT’s investment properties as at 30 June 2020 as the carrying amounts are based on the independent valuations as at 31 December 2019, and have not taken into account the impact of the COVID-19 pandemic, which may be significant.
“First REIT continues to be in a secure financial position and has adequate liquidity to meet its operational needs and financial commitments to navigate through the crisis. The Manager will continue to exercise caution and prudence in its capital and cashflow management,” the REIT said in a statement.
Read full statement here..
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