First REIT's 1H FY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue, NPI, distributable amount and DPU declined YoY mainly due to a stronger Singapore Dollar against the Indonesia Rupiah and the Japanese Yen.

Related Parties Shareholding

The REIT sponsor, REIT manager, and directors of the REIT manager hold a relatively high proportion of shareholding.

Lease Profile

Committed occupancy stands at 100%, with a long WALE and no major lease expiry within 4 years. However, the proportion of income in SGD/major currencies is low.

Debt Profile

The interest coverage ratio and proportion of fixed-rate debt are high. However, the cost of debt is high, the proportion of unsecured debt is relatively low, and there's a concentration on debt maturity in 2026.

Diversification Profile

The portfolio shows diversity in geographical locations and properties, but a high concentration in tenants.

Key Financial Metrics

Property yield, operating distributable income on capital and operating distributable income margin are high. However, the manager's management fee is high compared to operating distributable income.

DPU Breakdown

• TTM Distribution Breakdown:
• 91.3% from Operation
• 8.7% from Management Fees Paid in Units

Trends (Up to 10 Years)

• Uptrend: Property Yield
• Flat: Committed Occupancy, Operating Distribution Proportion
• Downtrend: DPU from Operation, NAV per Unit, Adjusted Interest Coverage Ratio, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield - Average for 1y, 3y, 5y & 10y
• P/NAV - Average for 1y, 3y, 5y & 10y

Author's Opinion

Compared to the previous half-year, performance has declined as the Japanese Yen and Indonesian Rupiah continue to depreciate against the Singapore Dollar. The presentation shows an outstanding rental of around S$6.4 million from PT Metropolis Propertindo Utama, where the manager is closely engaging with them. Regarding debt, there is no refinancing requirement until May 2026; however, the debt maturity is also concentrated in 2026.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.