First REIT's gross revenue soared 43.4% to S$20.1m

Thanks to newly acquired Indoensian properties.

According to OCBC Investment Research, First REIT (FREIT) reported its 2Q13 results which were within our expectations. Gross revenue surged 43.4% YoY to S$20.1m due largely to contribution from its four newly acquired properties in Indonesia (two acquired in Nov 2012 and two in May 2013).

Here's more:

Distributable amount to unitholders rose 4.0% YoY to S$12.7m but DPU fell 4.1% YoY to 1.85 S cents. However, if we strip out an exceptional distribution in 2Q12, FREIT’s distributable amount to unitholders and DPU would instead have increased by 26.6% and 16.4%, respectively.

As FREIT had already made an advance distribution of 0.99 S cents on 26 Jun 2013 (prior to the issuance of new units for payment of its acquisitions), only the remaining 0.86 S cents will be paid to unitholders.

For 1H13, gross revenue rose 34.2% to S$37.6m and constituted 45.2% of our full-year projection. DPU (after stripping out the special distribution highlighted earlier) increased 12.9% to 3.59 S cents, or 45.5% of our FY13 forecast.

We expect 2H13 to be stronger on a HoH basis due to a fullquarter of contribution beginning 3Q13 from  the two hospitals acquired in May 2013. We will provide more details after the analyst briefing.