(Constituted in the Republic of Singapore pursuant to a trust deed dated 19 October 2006) (as amended)

ANNUAL VALUATION OF PROPERTIES

First REIT Management Limited, in its capacity as manager of First Real Estate Investment Trust ("First REIT" and as manager of First REIT, the "Manager") wishes to announce that the Manager has obtained independent annual valuations, as at 31 December 2020, for all properties owned by First REIT and its subsidiaries.

The portfolio of First REIT's properties is revalued at S$939.7 million, representing a decrease of S$401.1 million (29.9%) over First REIT's book value as at 31 December 2019. The revalued portfolio of First REIT will be reflected in the financial statements of First REIT for the financial year ended 31 December 2020.

The valuations of First REIT's properties are set out below, which have taken into consideration the terms arising from (a) the Memorandum of Understanding entered into between Perpetual (Asia) Limited (as trustee of First REIT, the "Trustee") and PT. Lippo Karawaci Tbk dated 28 November 2020 as announced in First REIT's announcement on 29 November 2020 titled "Restructuring of Master Leases" (the "Restructuring Announcement"); (b) the Memorandum of Understanding entered into between the Trustee and PT. Metropolis Propertindo Utama dated 28 November 2020 as announced in the Restructuring Announcement; and (c) existing occupational arrangements of the Properties.

Valuation

Appointed

(as at 31 Dec 2020)

% of

No.

Properties

Portfolio

Valuers (1)

IDR (2)

SGD

Value (3)

(in 'bn)

(in 'mn)

Indonesia

1

Siloam Hospitals Lippo Village

C&W

1,744.8

164.0

17.5%

2

Siloam Hospitals Kebon Jeruk

C&W

785.1

73.8

7.9%

3

Siloam Hospitals Surabaya

C&W

428.4

40.3

4.3%

4

Imperial Aryaduta Hotel & Country Club

KJPP W&R

-

41.4

4.4%

5

Siloam Hospitals Lippo Cikarang

C&W

-

49.8

5.3%

6

Mochtar Riady Comprehensive Cancer Centre

C&W

1,349.6

126.9

13.5%

7

Siloam Hospital Makassar

C&W

702.4

66.0

7.0%

8

Siloam Hospitals Manado & Hotel Aryaduta

C&W

-

77.5

8.2%

Manado (4)

9

Siloam Hospitals TB Simatupang

C&W

446.1

41.9

4.5%

10

Siloam Hospitals Bali

C&W

670.3

63.0

6.7%

11

Siloam Hospitals Purwakarta

C&W

243.7

22.9

2.4%

12

Siloam Sriwijaya

C&W

262.6

24.7

2.6%

13

Siloam Hospitals Kupang & Lippo Plaza

C&W

-

53.5

5.7%

Kupang (5)

14

Siloam Hospitals Labuan Bajo

C&W

118.9

11.2

1.2%

15

Siloam Hospitals Buton & Lippo Plaza Buton (6)

C&W

-

24.9

2.6%

16

Siloam Hospitals Yogyakarta

C&W

213.5

20.1

2.1%

Indonesia Portfolio Subtotal

-

901.8

96.0%

Valuation

Appointed

(as at 31 Dec 2020)

% of

No.

Properties

Portfolio

Valuers (1)

IDR (2)

SGD

Value (3)

(in 'bn)

(in 'mn)

Singapore

17

Pacific Healthcare Nursing Home @ Bukit

Savills

-

9.1

1.0%

Merah

18

Pacific Healthcare Nursing Home II @ Bukit

Savills

-

9.4

1.0%

Panjang

19

The Lentor Residence

Savills

-

15.3

1.6%

Singapore Portfolio Subtotal

33.8

3.6%

South Korea

20

Sarang Hospital (7)

Colliers

-

4.1

0.4%

South Korea Portfolio Subtotal

4.1

0.4%

Total Portfolio Value

-

939.7

100%

Note: Any discrepancies in the totals are due to rounding.

  1. The Appointed Valuers include Cushman & Wakefield VHS Pte. Ltd. in conjunction with KJPP Firman Suryantoro
    Sugeng Suzy Hartomo & Rekan ("C&W"), KJPP Willson dan Rekan in association with Knight Frank ("KJPP W&R"), Savills Valuation And Professional Services (S) Pte Ltd ("Savills") and Colliers International (Hong Kong) Limited ("Colliers").
  2. The properties affected by the Restructuring Announcement are valued in Indonesia Rupiah and have been converted to SGD based on the exchange rate of S$1 = IDR10,638.30 as at 31 December 2020.
  3. Value as a percentage of Total Portfolio Value.
  4. Siloam Hospitals Manado is valued at IDR428.3 billion, reflecting S$40.3 million at the exchange rate of S$1 = IDR10,638.30 as at 31 December 2020. Hotel Aryaduta Manado is valued at S$37.2 million. The Aggregate Market Value of the Siloam Hospitals Manado & Hotel Aryaduta Manado is therefore S$77.5 million.
  5. Siloam Hospitals Kupang is valued at IDR228.3 billion, reflecting S$21.5 million at the exchange rate of S$1 = IDR10,638.30 as at 31 December 2020 while Lippo Plaza Kupang is valued at S$32.0 million. The Aggregate Market Value of the Siloam Hospitals Kupang & Lippo Plaza Kupang is therefore S$53.5 million.
  6. Siloam Hospitals Buton is valued at IDR132.0 billion, reflecting S$12.4 million at the exchange rate of S$1 = IDR10,638.30 as at 31 December 2020 while Lippo Plaza Buton is valued at S$12.5 million. The Aggregate Market Value of the Siloam Hospitals Buton & Lippo Plaza Buton is therefore S$24.9 million.
  7. The valuation for Sarang Hospital as valued by Colliers is US$4.6 million, as at 31 December 2020. Based on potential upcoming capital expenditure costs, the Manager has taken a prudent view to mark down the valuation of Sarang Hospital to US$3.1 million. The valuation in SGD reflected in the above table is hence based on the value of US$ 3.1 million at the exchange rate of US$1 = S$1.3221 as at 31 December 2020.

The valuation reports are available for inspection with prior appointment at the Manager's registered office during normal business hours for three months from the date of this announcement.

By Order of the Board

Tan Kok Mian Victor

Executive Director and Chief Executive Officer

First REIT Management Limited

(Company Registration No. 200607070D)

As Manager of First REIT

14 January 2021

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Important Notice

The value of units in First REIT ("Units") and the income from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders of First REIT may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the "SGX-ST"). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.

This document is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Units. The past performance of First REIT is not necessarily indicative of the future performance of First REIT.

This document may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses (including employee wages, benefits and training costs), property expenses and governmental and public policy changes. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager's view of future events.

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First Real Estate Investment Trust published this content on 14 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 January 2021 16:03:01 UTC