First Reit Q1 DPU dips 3.3% to S$0.0058 amid forex headwinds

First Real Estate Investment Trust’s (First Reit) distribution per unit (DPU) fell 3.3 per cent to S$0.0058 for the first quarter ended Mar 31, compared to S$0.006 in the corresponding year-ago period.

Rental and other income fell 2.8 per cent to S$25.4 million, while net property and other income slipped 2.8 per cent to S$24.6 million.

In a business update on Tuesday (Apr 29), the manager attributed the Q1 decline to the depreciation of the Indonesian rupiah and Japanese yen against the Singapore dollar. This was partially offset by higher rental income from properties in Indonesia and Singapore, it said.

There was also an enlarged unit base – up by 0.8 per cent – from the issuance of units for payment of management fee to the manger, it said.

That brought distributable income to S$12.2 million in Q1, down 2.2 per cent year on year from S$12.4 million.

The distribution will be paid out on Jun 26, after book closure on May 15.

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Meanwhile, the Reit’s cost of debt fell to 4.7 per cent from 5 per cent, amid lower interest rates.

As at Mar 31, some 56.7 per cent of the trust’s debt portfolio was either on fixed rates or hedged. Gearing ratio rose slightly to 40.7 per cent, with an interest coverage ratio of 3.8 times and weighted average term to maturity of 2.3 years.

The manager added that the Reit has no refinancing requirements till May 2026.

Net asset value consequently inched down to S$0.2737, from S$0.286 at the end of December 2024. This represents a price-to-book ratio of 0.97 times, said the manager.

Looking ahead, the manager expects continued uncertainties in the global debt market. This will contribute to volatile interest rates and disrupted dynamics within debt markets, it said.

“(It) suggests that current debt is unlikely to be repaid through returns from income-generating assets,” said the manager. “Adverse events and conflicts may also affect asset prices indirectly through policy response to macroeconomic developments, such as growth and inflation.”

But the manager emphasised its commitment to prioritising effective interest rate and foreign currency exposure management, while navigating the challenging global economic environment.

Units of First Reit closed flat at S$0.255 on Tuesday, before the announcement.