First Reit Posts Distributable Income Of $4.61m For Q3

Source : The Business Times, October 23, 2007

Trust confident of boosting value of assets to $500m before end-2009

SINGAPORE’S first healthcare real estate investment trust (First Reit) said yesterday that its third-quarter distributable income came to $4.61 million - 5.4 per cent higher than forecast - due to rental contributions from newly acquired properties.

First Real Estate Investment Trust (First Reit) bought Pacific Healthcare Nursing Homes at Bukit Merah and Senja in April, The Lentor Residence in June and Adam Road Hospital in July.

Dr Tan: 'The regional macro-economic environment ... remains positive for 2007. As such, we are confident of exceeding our forecast DPU of 6.51 cents for the full year.'

Distribution per unit (DPU) came to 1.72 cents for Q3 ended Sept 30, ahead of a 1.6 cents forecast. Net property income totalled $7 million, or 15.6 per cent higher than forecast.

Ronnie Tan, chief executive of Bowsprit Capital Corporation, which manages the Reit, said: ‘The regional macro-economic environment, including Indonesia and Singapore, where we have the bulk of our properties, remains positive for 2007.

‘As such, we are confident of exceeding our forecast DPU of 6.51 Singapore cents for the full year.’

The trust is confident of boosting the value of its assets to $500 million before end-2009, Dr Tan said.

First Reit now has eight properties worth $328 million. Its net asset value per unit came to 0.88 of a cent as at Sept 30.

The Reit recently ventured into China, where it agreed with hospitals in Wuxi, Shanghai and Jiangsu province to ‘explore potential acquisitions’.

Earlier this month, First Reit signed a memorandum of understanding to acquire the 90-bed Wuxi New District Phoenix Hospital. In August, it said that it was investing in a 500-bed hospital property in Jiangsu province.

Then, the following month, it agreed to invest in the property assets of the 200-bed Shanghai Woman and Child Healthcare Hospital and the proposed Hengshan Urology Hospital, both in Shanghai.

First Reit said that it is continuing to explore potential acquisitions with its sponsor Lippo Karawaci in Indonesia.

First Reit’s shares closed half a cent down at 77 cents yesterday, with 112,000 shares changing hands.

Related links:-
http://tinyurl.com/22oxrq
First Reit's press release

http://tinyurl.com/2zduvj
Financial statement