FIRST REAL ESTATE INVESTMENT TRUST
2018 FULL YEAR UNAUDITED FINANCIAL STATEMENTS & DISTRIBUTION ANNOUNCEMENT
First Real Estate Investment Trust ("First REIT") is a real estate investment trust constituted by the Trust Deed entered into on 19 October 2006 between Bowsprit Capital Corporation Limited as the Manager and HSBC Institutional Trust Services (Singapore) Limited as the Trustee. First REIT was listed on the Singapore Exchange Securities Trading Limited on 11 December 2006. On 1 March 2018, HSBC Institutional Trust Services (Singapore) Limited retired as the Trustee of First REIT in favour of Perpetual (Asia) Limited.
First REIT is Singapore's first healthcare real estate investment trust that aims to invest in a diversified portfolio of income-producing real estate and / or real estate-related assets in Asia that are primarily used for healthcare and / or healthcare-related purposes.
Managed by Bowsprit Capital Corporation Limited, First REIT's portfolio consists of twenty properties located in Indonesia, Singapore and South Korea, namely 1) Siloam Hospitals Lippo Village, 2) Siloam Hospitals Kebon Jeruk, 3) Siloam Hospitals Surabaya, 4) Imperial Aryaduta Hotel & Country Club, 5) Mochtar Riady Comprehensive Cancer Centre, 6) Siloam Hospitals Lippo Cikarang, 7) Siloam Hospitals Manado & Hotel Aryaduta Manado, 8) Siloam Hospitals Makassar, 9) Siloam Hospitals Bali, 10) Siloam Hospitals TB Simatupang, 11) Siloam Hospitals Purwakarta, 12) Siloam Sriwijaya, 13) Siloam Hospitals Kupang & Lippo Plaza Kupang, 14) Siloam Hospitals Labuan Bajo, 15) Siloam Hospitals Buton and Lippo Plaza Buton, 16) Siloam Hospitals Yogyakarta, 17) Pacific Healthcare Nursing Home @ Bukit Merah, 18) Pacific Healthcare Nursing Home II @ Bukit Panjang, 19) The Lentor Residence and 20) Sarang Hospital.
Its hospital assets in Indonesia are operated by PT Siloam International Hospitals Tbk, a subsidiary of PT Lippo Karawaci Tbk, a strong brand name in the Indonesian healthcare industry supported by a team of international healthcare professionals whereas The Imperial Aryaduta Hotel & Country Club and Hotel Aryaduta Manado are operated by The Aryaduta Hotel and Resort Group. The Lippo Plaza Kupang and Lippo Plaza Buton are managed by PT Lippo Malls Indonesia. In Singapore, the nursing homes at Bukit Merah and Bukit Panjang are operated by Pacific Healthcare Nursing Home Pte. Ltd. and Pacific Eldercare and Nursing Pte. Ltd., respectively. The Lentor Residence is operated by The Lentor Residence Pte. Ltd. In South Korea, the Sarang Hospital is operated by a private doctor.
Through First REIT, investors can participate in an asset class that has a focus towards Asia's growing healthcare sector, which is boosted by an increase in life expectancy in Indonesia and the rest of Southeast Asia.
FIRST REAL ESTATE INVESTMENT TRUST
2018 FULL YEAR UNAUDITED FINANCIAL STATEMENTS & DISTRIBUTION ANNOUNCEMENT
Summary of First REIT's Results
Gross Revenue
Net Property Income
Distributable Amount
Distribution per unit (cts)
Annualised Distribution per unit (cts)
Group | |||||
Quarter | Full Year | ||||
4Q 2018 | 4Q 2017 | Change | 31 Dec 2018 | 31 Dec 2017 | Change |
S$'000 | S$'000 | % | S$'000 | S$'000 | % |
29,321 28,530 17,014 2.15 8.60 | 28,551 27,990 16,777 2.15 8.571 | 2.7% 1.9% 1.4% - 0.4% | 116,198 114,391 67,681 8.60 8.60 | 110,993 109,476 66,727 8.571 8.571 | 4.7% 4.5% 1.4% 0.4% 0.4% |
Note:
1)
Actual distribution paid for FY 2017.
Distribution Details
Distribution | 1 October 2018 to 31 December 2018 |
Distribution type |
|
Distribution rate | Total : 2.15 cents per unit
|
Book closure date | 24 January 2019 at 5.00 pm |
Ex-dividend date | 23 January 2019 at 9.00 am |
Payment date | 28 February 2019 |
Distribution Reinvestment Plan ("DRP")
The DRP will not be applicable for this quarter. All Unitholders will be receiving 4Q 2018 DPU of Singapore 2.15 cents in cash, payable on 28 February 2019. The Manager may consider applying the DRP at a later date and Unitholders will be notified accordingly.
Page 2 of 19
FIRST REAL ESTATE INVESTMENT TRUST
2018 FULL YEAR UNAUDITED FINANCIAL STATEMENTS & DISTRIBUTION ANNOUNCEMENT
1(a)(i)Statement of Comprehensive Income
Gross revenue
Property operating expenses Net property income Interest income
Manager's management fees
Trustee fees
Finance costs
2
Other expenses
Net income before the undernoted
Net fair value (losses)/gains on investment properties
Net change in fair value of derivative financial instruments
Total return for the period/year before income tax
Income tax benefit/(expense)
Total return for the period/year after income tax
Other comprehensive income: Exchange differences on translating foreign operations, net of tax
Total comprehensive income for the period/year
Total return for the period after income tax attributable:
Unitholders 2
Perpetual securities holders 2
Group | ||||||
Quarter | Full Year | |||||
Note | 4Q 2018 | 4Q 2017 | Change | 31 Dec 2018 | 31 Dec 2017 | Change |
1 2 3 4 5 6 | S$'000 | S$'000 | % | S$'000 | S$'000 | % |
29,321 (791) | 28,551 (561) | 2.7% 41.0% | 116,198 (1,807) | 110,993 (1,517) | 4.7% 19.1% | |
28,530 433 (2,875) (108) (5,906) (155) | 27,990 437 (2,794) (104) (4,875) (1,012) | 1.9% (0.9%) 2.9% 3.8% 21.1% (84.7%) | 114,391 1,690 (11,435) (427) (21,614) (2,298) | 109,476 1,429 (10,877) (405) (17,818) (1,056) | 4.5% 18.3% 5.1% 5.4% 21.3% 117.6% | |
19,919 (5,358) (437) | 19,642 13,367 80 | 1.4% NM NM | 80,307 (5,358) (174) | 80,749 13,367 (558) | (0.5%) NM (68.8%) | |
14,124 15,010 | 33,089 (6,874) | (57.3%) NM | 74,775 1,100 | 93,558 (20,120) | (20.1%) NM | |
29,134 | 26,215 | 11.1% | 75,875 | 73,438 | 3.3% | |
301 | 84 | 258.3% | 370 | (649) | NM | |
29,435 | 26,299 | 11.9% | 76,245 | 72,789 | 4.7% | |
28,275 859 | 25,356 859 | 11.5% - | 72,467 3,408 | 70,030 3,408 | 3.5% - | |
29,134 | 26,215 | 11.1% | 75,875 | 73,438 | 3.3% |
Note:
NM - Not meaningful
The results for 4Q 2018 includes the full quarter contribution from Siloam Hospitals Yogyakarta ("SHYG") which was acquired in 4Q 2017.
1)Property operating expenses for 4Q 2018 increased by 41.0% to S$791,000 compared to 4Q 2017 mainly due to higher expenses incurred for Sarang Hospital and Indonesia properties.
2) Finance costs for 4Q 2018 increased to S$5.9 million compared to 4Q 2017 mainly due to higher interest costs on loans and full quarter interest expenses for loan drawn down to finance the acquisition of SHYG in 4Q 2017.
3) Other expenses for 4Q 2018 decreased to S$155,000 compared to 4Q 2017 mainly due to the absence of costs related to Medium Term Note ("MTN") exercise and change of trustee incurred in Q4 2017.
4) Net fair value losses on investment properties for 4Q 2018 of S$5.4 million compared to net fair value gains on investment properties for 4Q 2017 was mainly due to losses on revaluation of investment properties.
Page 3 of 19
FIRST REAL ESTATE INVESTMENT TRUST
2018 FULL YEAR UNAUDITED FINANCIAL STATEMENTS & DISTRIBUTION ANNOUNCEMENT
5) Net change in fair value of derivative financial instruments for 4Q 2018 relates to the revaluation losses on the interest rate swap contracts.
6) Income tax benefit for 4Q 2018 of S$15.0 million compared to income tax expense for 4Q 2017 mainly due to write back of provision for deferred taxation on fair value loss on investment properties resulting from a reduction in tax rates, partly offset by higher current tax expenses.
1(a)(ii) Statement of Distribution
Total return for the period/year after income tax
Adjustments for tax purposes:
- Manager's management fees payable in units
- Foreign exchange (gains)/losses
- Net fair value (gains)/losses on investment properties, net of deferred tax
- Net change in fair value of derivative financial instruments
- Costs related to MTN exercise
- Amount reserved for distribution to perpetual securities holders
- Others
Total available for distribution to Unitholders
Unitholders' distribution:
- as distribution from operations - as distribution of Unitholders'
capital contribution Distributable amount to Unitholders
Group | ||||||
Quarter | Full Year | |||||
Note | 4Q 2018 | 4Q 2017 | Change | 31 Dec 2018 | 31 Dec 2017 | Change |
1 2 | S$'000 | S$'000 | % | S$'000 | S$'000 | % |
29,134 2,018 (40) (14,343) 437 - (859) 667 | 26,215 2,239 (286) (11,062) (80) 698 (859) (88) | 11.1% (9.9%) (86.0%) 29.7% NM NM - NM | 75,875 9,459 380 (14,343) 174 - (3,408) (456) | 73,438 8,892 (1,526) (11,062) 558 698 (3,408) (863) | 3.3% 6.4% NM 29.7% (68.8%) NM - (47.2%) | |
17,014 | 16,777 | 1.4% | 67,681 | 66,727 | 1.4% | |
9,430 7,584 | 9,370 7,407 | 0.6% 2.4% | 37,275 30,406 | 38,454 28,273 | (3.1%) 7.5% | |
17,014 | 16,777 | 1.4% | 67,681 | 66,727 | 1.4% |
Note:
NM - Not meaningful
1)The net fair value (gains)/losses on investment properties, net of deferred tax comprises of the following figures.
Group | ||||
Fair value losses/(gains) on investment properties Deferred tax (benefits)/expenses Net fair value (gains)/losses on investment properties, net of deferred tax | Quarter | Full Year | ||
4Q 2018 | 4Q 2017 | 31 Dec 2018 | 31 Dec 2017 | |
S$'000 | S$'000 | S$'000 | S$'000 | |
5,358 (19,701) | (13,367) 2,305 | 5,358 (19,701) | (13,367) 2,305 | |
(14,343) | (11,062) | (14,343) | (11,062) |
Page 4 of 19
FIRST REAL ESTATE INVESTMENT TRUST
2018 FULL YEAR UNAUDITED FINANCIAL STATEMENTS & DISTRIBUTION ANNOUNCEMENT
2)In 2016, the Trust issued S$60.0 million of subordinated perpetual securities. The perpetual securities confer a right to receive distribution payments at the rate of 5.68% per annum, with the first distribution rate reset falling on 8 July 2021 and subsequent resets occurring every five years thereafter. Distributions under the perpetual securities will be payable semi-annually in arrears on 8 January and 8 July in each year on a discretionary basis. Any distribution unpaid will be non-cumulative as stated in the terms and conditions of the perpetual securities.
1(b)(i) Statements of Financial Position
Assets
Non-current Assets Plant and equipment Investment properties Investments in subsidiaries Loan receivable, non-current Deferred tax assets
Other receivable, non-current Total non-current assets
Current Assets
Trade and other receivables, current Loan receivable, current
Other assets, current
Other financial assets, current Cash and cash equivalents Total current assets
Total Assets
Non-current Liabilities Deferred tax liabilities
Other financial liabilities, non-current Derivative financial instruments Total non-current liabilities
Current Liabilities Income tax payable
Trade and other payables, current Other financial liabilities, current Other liabilities, current Derivative financial instruments Total current liabilities
Total Liabilities
Net Assets
Represented by:
Net assets attributable to unitholders
Perpetual Securities holders' fund
Net assets attributable to perpetual securities holder
Note | Group | Trust | ||
1 2 3 4 4 | 31 Dec 2018 | 31 Dec 2017 | 31 Dec 2018 | 31 Dec 2017 |
S$'000 | S$'000 | S$'000 | S$'000 | |
68 1,345,295 - - 1,368 27,035 | - 1,349,303 - - 1,213 27,035 | - 34,900 778,734 39,415 1,368 - | - 35,500 804,472 44,239 1,213 - | |
1,373,766 | 1,377,551 | 854,417 | 885,424 | |
32,391 - 4,833 26 27,758 | 25,982 - 4,573 - 15,741 | 17,548 4,191 251 - 18,314 | 13,287 4,191 25 - 8,194 | |
65,008 | 46,296 | 40,304 | 25,697 | |
1,438,774 | 1,423,847 | 894,721 | 911,121 | |
31,850 386,761 250 | 51,396 278,125 512 | - 386,761 250 | - 278,125 512 | |
418,861 | 330,033 | 387,011 | 278,637 | |
1,989 16,135 109,658 22,793 185 | 2,000 18,216 198,324 22,795 164 | - 17,176 109,658 1,965 185 | - 23,931 198,324 1,926 164 | |
150,760 | 241,499 | 128,984 | 224,345 | |
569,621 | 571,532 | 515,995 | 502,982 | |
869,153 | 852,315 | 378,726 | 408,139 | |
808,275 60,878 | 791,437 60,878 | 317,848 60,878 | 347,261 60,878 | |
60,878 | 60,878 | 60,878 | 60,878 | |
869,153 | 852,315 | 378,726 | 408,139 |
Page 5 of 19
Attachments
- Original document
- Permalink
Disclaimer
First Real Estate Investment Trust published this content on 16 January 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 16 January 2019 15:23:07 UTC