FIRST Reit’s distribution per unit (DPU) fell by 3.2 per cent to S$0.006 for the first quarter ended Mar 31, as compared to S$0.0062 in the corresponding year-ago period.

Rental and other income declined 2.7 per cent on the year to S$26.1 million for the quarter, while net property and other income decreased 2.1 per cent to S$25.3 million.

“The financial results in Q1 2024 were impacted by a stronger Singapore dollar against the Indonesia rupiah and the Japanese yen,” said the healthcare real estate investment trust’s (Reit) manager in a business update on Wednesday (Apr 24).

It added that the currency depreciation was, however, offset by higher rental income in local currency terms from assets in Indonesia and Singapore, as well as stable rental income in local currency terms from Japan assets.

Distributable income was also down 2.2 per cent to S$12.4 million, from S$12.7 million, as a result of both a stronger Singapore dollar and a higher finance cost.

Cost of debt for the quarter rose to 5 per cent from 4.7 per cent a year ago, led by rising interest rates, said the manager.

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As at Mar 31, 87.1 per cent of First Reit’s debt was on fixed rates or hedged. Its gearing ratio remained flat at 38.8 per cent with an interest coverage ratio of 4 per cent. The manager highlighted that the Reit also has no refinancing requirements until May 2026.

Net asset value per unit as at Mar 31 stood at S$0.2948, down from S$0.3018 as at the end of 2023 due to currency translation.

The manager also updated that the rental outstanding as at the end of Q1 from tenant PT Metropolis Propertindo Utama (MPU) amounted to about S$5.2 million, while the security deposit received from the company amounted to about S$2.3 million. It is also engaging closely with MPU on repayments.

“Aged care markets in much of Asia-Pacific are at a nascent stage of development, as the responsibility of elderly care potentially shifts from families to institutions amid declining birth rates,” said the manager, adding that First Reit is well-positioned to ride the tailwinds in the healthcare sector.

The distribution will be paid out on Jun 21, after books closure on May 8.

Units of First Reit : AW9U 0% closed Wednesday flat at S$0.25.