First REIT's net income upticks 6.3% to $26.6m

Thanks to contributions from newly acquired Kupang property.

Singapore's first healthcare trust First REIT is now seeing the fruits of its acquisitions in Indonesia as it recorded a 6.3% improvement in net property income.

To recall, First REIT acquired Kupang property back in December 2015, which comprises Siloam Hospitals Kupang and Lippo Plaza Kupang.

With the contributions from the said acquisitions, its earnings rose from $25m to $26.6m in 3Q16, which translated to a net property income margin of 98.9%.

The trust's distribution per unit, however, moved at a slower pace of 1.9% to 2.12 Singapore cents due to higher fees, finance costs and an enlarged unit base.

Looking forward, the trust aims to cash in the rising economy of Indonesia, which has seen a 5.18% growth in 2Q16.

"With the improving economy, the growing ageing population and the ongoing national health insurance scheme, the healthcare sector in Indonesia is expected to continue with its growth momentum," the group said.

It furthered, “First REIT’s Sponsor, PT Lippo Karawaci Tbk, has also continued to expand its healthcare portfolio to a strong pipeline of 42 hospitals, which presents opportunities for the Trust to make further yield accretive acquisitions.”