First REIT's 1Q FY25 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

First REIT posted a YoY decline in gross revenue, NPI, distributable income, and DPU. The drop was mainly driven by the depreciation of the Indonesian Rupiah and Japanese Yen against the Singapore Dollar. However, the decline was partially cushioned by stronger rental contributions from its Singapore properties.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Favorable
• REIT Manager's Shareholding: Favorable
• Directors of REIT Manager's Shareholding: Moderate

Lease Profile

• Committed Occupancy: Favorable
• Income Received in SGD/Major Currencies: Less Favorable
• Highest Annual Lease Expiry in 4 Years: Favorable
• WALE: Favorable
• Weighted Average Land Lease Expiry: Moderate

Debt Profile

• Adjusted Interest Coverage Ratio: Favorable
• Cost of Debt: Less Favorable
• Gearing Ratio: Moderate
• Fixed Rate Debt Proportion: Less Favorable
• Unsecured Debt Proportion: Less Favorable
• Highest Annual Debt Maturity in 4 Years: Less Favorable
• WADM: Less Favorable

Diversification Profile

• Top Geographical Weightage: Favorable
• Top Property Weightage: Moderate
• Top 5 Properties' Weightage: Favorable
• Top Tenant Weightage: Moderate
• Top 10 Tenants' Weightage: Less Favorable

Key Financial Metrics

• Property Yield: Favorable
• Manager's Fees over Operating Distributable Income: Less Favorable
• Operating Distributable Income on Capital: Favorable
• Operating Distributable Income Margin: Favorable
• Operating Distribution Proportion: Moderate

DPU Breakdown

• TTM Distribution Breakdown:
• 91% from Operation
• 8.7% from Management Fees Paid in Units
• 0.3% being Retained

Trends (Up to 10 Years)

• Uptrend: Property Yield
• Slight Uptrend: Operating Distribution Proportion
• Flat: Committed Occupancy, Top 10 Tenants' Weightage
• Slight Downtrend: None
• Downtrend: DPU from Operations, NAV per Unit, Adjusted Interest Coverage Ratio, Top 5 Properties' Weightage, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y, 5y & 10y; Below -1SD 3y
• P/NAV: Above +1SD for 1y, 3y & 5y; Average for 10y

Author's Opinion

Compared to the previous quarter, overall performance remained relatively stable. As of now, PT Metropolis Propertindo Utama has an outstanding rental balance of S$5.8 million. On the debt side, there are no refinancing needs until May 2026.

Separately, in January, the REIT manager received a preliminary non-binding letter of intent from PT Siloam International Hospitals Tbk regarding a potential acquisition of First REIT’s Indonesian hospital assets. Citigroup Global Markets Singapore has been appointed to undertake a strategic review in connection with this proposal.

For more information, check out:

S-REITs Dashboard - Detailed information on individual Singapore REIT

S-REITs Data - Overview and detail of Singapore REITs

S-REIT Comparison - Comparison among Singapore REITs

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.