First REIT’s revenue climbed 12% to $93.3m in FY14

Its DPU gained 7% to 8.05 cents.

First REIT reported solid results for FY14, with its revenue climbing 12% year-on-year to $93.3m and its distribution per unit gaining 7% to 8.05 cents.

OCBC believes that the outlook remains positive for First REIT, on back of Indonesia’s manageable fiscal deficits, new president Joko Widodo’s efforts to carry out structural reforms and a boost in infrastructure spending.

“We believe FREIT’s solid defensive attributes and minimal exposure to both interest rates and FX volatility make it as a good investment proposition for investors amid the current macro uncertainties,” stated OCBC.

Here’s more from OCBC:

First REIT’s (FREIT) 4Q14 results came in within our expectations. DPU of 2.04 S cents (ex-dividend on 22 Jan) represented a 3.6% YoY increase on the back of a 4.6% growth in gross revenue.

The latter was in turn driven by contribution from Siloam Hospitals Purwakarta which was acquired in May 2014 as well as organic growth.

For FY14, gross revenue rose 12.0% to S$93.3m, while DPU gained 7.0% to 8.05 S cents. This matched our forecast of S$93.3m and 8.07 S cents, respectively.

FREIT’s debt-to-asset ratio stood at a healthy 32.7%, as at 31 Dec 2014. Moreover, ~95% of its debt is currently on a fixed/hedged basis, thus mitigating the impact of fluctuations in interest rates and providing stability to unitholders. FREIT also has no refinancing requirements until 2017.