SIAS Corporate Connect
5 N o v e m b e r 2 0 2 4
FIRST REIT, LISTED ON SGX-ST IN DECEMBER 2006, IS SINGAPORE'S FIRST HEALTHCARE REIT WITH S$1.14 BILLION AUM (1)
Our vision is to become
Asia's premier healthcare trust.
Our mission is to deliver stable and sustainable distributions to Unitholders.
SPONSORS (2)
__________________________
Notes
Asset | Total GFA | Weighted Average |
Size (1) | of 32 Properties (3) | Lease Expiry (3) |
S$1.14 | 448,744 | 10.8 |
billion | square metres | years |
Max. No. | Total No. | Occupancy |
Rooms/Beds (3) | of Tenants (3) | Rate (3) |
6,511 | 11 | 100% |
(1) | Based on appraised values as at 31 December 2023. | ||
(2) | As at 30 | September 2024, First REIT's Sponsors hold 45.06% of First REIT units and 100% of the Manager, reflecting a strong alignment of interests with Unitholders. | 3 |
(3) | As at 30 | September 2024. |
A PORTFOLIO OF 32 PROPERTIES COMPRISING HOSPITALS,
NURSING HOMES, AND HEALTHCARE-RELATED ASSETS ACROSS ASIA
SINGAPORE
3 nursing homes
(2.8% of AUM (1))
__________________________
Note
(1) As at 31 December 2023.
JAPAN
14 nursing homes
(22.7% of AUM (1))
INDONESI A
11 hospitals 2 integrated hospitals & malls
1 integrated hospital & hotel
1 hotel & country club (74.5% of AUM (1))
4
HARNESSING SUSTAINABLE GROWTH
FROM MASTER LEASES
Healthcare Assets | Indonesia (1) | Singapore | Japan |
Rent | Higher of | • Fixed base rental with annual | • Annual rental may be revised |
escalation in local currencies | • Base rent escalation of 4.5%; | increment of 2%. | upwards upon negotiation every |
or | 2 to 3 years for 12 assets, and | ||
every 5 years for 2 assets. (2) | |||
• Performance-based rent of | |||
8.0% of hospital's gross | |||
operating revenue in the | |||
preceding financial year. | |||
Managing | • Cost of utilities and repair | • Cost of utilities managed by | • Cost of utilities managed by |
Inflation | managed by Master Lessees in | Master Lessees in double net | Master Lessees in single net |
triple net lease agreements. | lease and triple net lease | lease and triple net lease | |
agreements. | agreements. | ||
__________________________
Notes
(1) | Excluding Siloam Hospitals Lippo Cikarang, of which rent is denominated in SGD with a fixed base rental, an annual base rental escalation (2x percentage increase of Singapore CPI, capped at 2%), and an additional | |
variable rental growth component that is a function of the year-on-year increase in its gross revenue. | 5 | |
(2) | Negotiation based on the increase in Japan's consumer price index and interest rates. |
WALE & LEASE EXPIRY PROFILE
LEASE EXPIRY PROFILE AS % OF GFA
(AS AT 30 SEPTEMBER 2024)
16.9%
73.1% | WALE (1) |
10.8 years | |
10.0%
Within 5 years | Within 5-10 years | More than 10 years | |
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Notes
Lease Expiry within 5 Years | |
Property | Expiry |
Imperial Aryaduta Hotel & Country Club (2) | Dec 2024 |
Siloam Hospitals Lippo Cikarang | Dec 2025 |
Precious Homes @ Bukit Merah | Apr 2027 |
Precious Homes @ Bukit Panjang | Apr 2027 |
Medical Rehabilitation Home Bon Séjour Komaki | May 2027 |
The Lentor Residence | Jun 2027 |
Hotel Aryaduta Manado | Nov 2027 |
- The WALE is calculated on a gross floor area basis and as at 30 September 2024.
- In October 2024, it was mutually agreed that the lease term for Imperial Aryaduta Hotel & Country Club was further extended for one year till 31 December 2025. The Manager intends to continue to market for divestment
and believes it is prudent to have in place a short-term lease in line with market terms while this process remains ongoing. The extended lease provides some revenue stability from IAHCC while still allowing the Manager | 6 |
strategic flexibility as it further refines its longer-term business plans. |
DIVERSIFIED TENANT BASE
TENANT MIX BY RENTAL INCOME IN 9M 2024 (1)
Indonesia | Japan | Singapore | 9M 2023 | RENTAL INCOME FROM HOSPITALS IN INDONESIA (2) | |||||||||||
40.1% | |||||||||||||||
Siloam | LPKR and | ||||||||||||||
34.2% | Siloam | ||||||||||||||
MPU | |||||||||||||||
57.6% | 81.3% | ||||||||||||||
18.7% | |||||||||||||||
LONG | |||||||||||||||
9M 2024 | |||||||||||||||
TERM (2) | |||||||||||||||
LPKR and | |||||||||||||||
MPU | |||||||||||||||
42.4% | |||||||||||||||
9.6% | ||||||
6.0% | ||||||
2.1% | 2.1% | 1.6% | 1.4% | 1.4% | 0.9% | 0.6% |
PT Siloam | PT Lippo | Hikari Heights | PT Metropolis | Safety Life Co., | The Lentor | Orchard Care | Precious | Precious | Benesse Style | Social Welfare | ||
International | Karawaci Tbk | Varus Co., Ltd. | Propertindo | Ltd. | Residence Pte. | Co., Ltd | Homes Pte. Ltd. | Homes Bukit | Care Co., Ltd | Research | ||
Hospitals Tbk | and subsidiaries | Utama and | Ltd | Panjang Pte. | Institute Co., Ltd | |||||||
and subsidiaries | ("LPKR") | subsidiaries | Ltd. | |||||||||
("Siloam") | (excluding | ("MPU") | ||||||||||
__________________________Siloam) | ||||||||||||
Notes | ||||||||||||
(1) | Before recognition of FRS 116 rental straight-lining adjustments. | 7 | ||||||||||
(2) | Based on the terms of the Tripartite MLAs, from 1 October 2026, Siloam will pay 6.5% of the preceding year's gross operating revenue ("GOR"), leaving LPKR or MPU to pay 1.5% of the preceding year's GOR. The |
percentages represented in this projection assumes that the rentals for each of the Tripartite MLAs beyond year 2026 are calculated based on the performance-based rent of 8.0% of each hospital's preceding year's GOR.
9M 2024
FINANCIAL HIGHLIGHTS
8
KEY FINANCIALS
FINANCIAL HIGHLIGHTS | 9M 2024 | 9M 2023 | % Change |
(S$' MILLION) | |||
RENTAL & OTHER INCOME (1) | 77.0 | 81.4 | (5.3%) |
NET PROPERTY & OTHER | 74.4 | 79.1 | (6.0%) |
INCOME (2) | |||
DISTRIBUTABLE AMOUNT | 37.0 | 38.4 | (3.4%) |
TOTAL ISSUED AND ISSUABLE | 2,094.4 | 2,076.9 | 0.8% |
UNITS (MILLIONS) | |||
DPU (CENTS) | 1.78 | 1.86 | (4.3%) |
- Rental and Other Income declined 5.3% year-on- year to S$77.0 million in 9M 2024, and Net Property and Other Income fell 6.0% year-on- year to S$74.4 million over the same period.
- The financial results in 9M 2024 were impacted by the depreciation of Japanese Yen and Indonesian Rupiah against Singapore Dollar.
- Distributable Amount declined by 3.4% year-on- year to S$37.0 million in 9M 2024 and DPU has consequently dipped from 1.86 Singapore cent in 9M 2023 to 1.78 Singapore cent in 9M 2024.
- 3Q 2024 DPU of 0.58 Singapore cent was 3.3% lower as compared to the two preceding quarters of 0.60 Singapore cent.
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Notes
(1) | Excluding FRS 116 adjustment on rental straight-lining, rental and other income decreased by 1.8% to S$68.4 million in 9M 2024 as compared to S$69.6 million in 9M 2023. | 9 |
(2) | Excluding FRS 116 adjustment on rental straight-lining, net property and other income decreased by 2.5% to S$65.7 million in 9M 2024 as compared to S$67.4 million in 9M 2023. |
HEALTHY UNDERLYING PERFORMANCE
Financial Highlights
Rental and Other Income (1), (2)
-0.3% | |||
Indonesia | 55.2 | 55.0 | |
(S$' million) | |||
9M 2023 | 9M 2024 | ||
-10.4% | |||
Japan | 11.2 | 10.1 | |
(S$' million) | |||
9M 2023 | 9M 2024 | ||
Singapore | +2.0% | |
3.2 | 3.3 | |
(S$' million) | ||
9M 2023 | 9M 2024 |
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Notes
100% committed occupancy, with healthy underlying growth
Rental and Other Income (In local currency) (1), (2)
+4.4% | ||
Indonesia | 515.3 | 537.8 |
Hospitals and | ||
Hotel (3) | ||
(IDR' billion) (4) | ||
9M 2023 | 9M 2024 | |
Stable
1,131.71,131.7
Japan
nursing homes (JPY' million)
9M 2023 | 9M 2024 |
(1) Excluding FRS 116 adjustment on rental straight-lining.
(2) | Based on average exchange rates, SGD/IDR depreciated 3.5% from 11,364 in 9M 2023 to 11,765 in 9M 2024, while SGD/JPY depreciated 10.9% from 101 to 112 over the same period. | 10 |
(3) | Including Imperial Aryaduta Hotel & Country Club. | |
(4) | Excluding Siloam Hospitals Lippo Cikarang as its rent is denominated in SGD. |
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