First Reit H1 reports lower 2025 DPU of S$0.0113 on FX depreciation and enlarged unit base

[SINGAPORE] The manager of First Reit reported a 5.2 per cent fall in H1 2025 distribution per unit (DPU) to S$0.0113 from S$0.012 in H1 2024 in a bourse filing on Tuesday (Jul 29).

This comprises the Q1 2025 DPU of S$0.0058, which was paid on Jun 26, and Q2 2025 DPU of S$0.0055, which will be paid on Sep 25.

Rental and other income for H1 2025 fell 2.9 per cent to S$50.5 million from S$52 million in H1 2024. This was mainly driven by the depreciation of the rupiah and yen against the Singapore dollar, and partially offset by higher rental income from assets in Indonesia and Singapore.

As a result, net property and other income also fell in tandem, down 2.7 per cent to S$48.9 million in H1 2025 from S$50.3 million in H1 2024. Distributable amount fell 4.8 per cent to S$23.8 million in H1 2025 from S$25 million in H1 2024 on the same foreign currency depreciation.

The fall in DPU was driven by these factors and an enlarged unit base from issuance of units as payment of management fees to the manager.

The gearing ratio for First Reit rose slightly to 41.2 per cent, and interest coverage ratio remained at 3.7 times. The real estate investment trust has no refinancing requirements until May 2026, and has adopted hedging strategies to protect net cash flows from Indonesia and Japan.

Currency volatility is expected to persist across Asia, influenced by the ongoing global trade uncertainties and domestic fiscal challenges. The rupiah and yen have both depreciated this year, with Bank Indonesia intervening in June and Bank of Japan signalling caution over additional rate hikes.

“The volatility and depreciation of the Indonesian rupiah against the Singapore dollar moderated our distributable income for the first half of 2025, despite Indonesia properties achieving a 5.5 per cent increase in rental income in local currency terms. This necessitates our continued focus on actively managing foreign currency risks and our capital management strategy,” said Victor Tan, executive director and CEO of the manager.

Units of First Reit closed unchanged at S$0.28 on Tuesday.