First REIT net property income up 2.7% YoY to $25.8m in Q1 2023

This is supported by the full quarter contribution of its Japanese nursing homes.

First REIT posted a 2.7% year-on-year (YoY) increase in net property and other income to reach $25.8m as it included a one-month maiden contribution from 12 nursing homes in Japan that were bought in March last year.

In a disclosure, First REIT said its rental and other income rose by 4.9% to $26.8m on the back of the contribution from the Japan nursing homes and higher rental income from its properties in Indonesia and Singapore.

The company has 14 nursing homes in Japan, 12 of which were acquired in March 2022 whilst the other two were obtained in September 2022. First REIT’s manager also acquired asset management firm FRM Japan Management in March 2023 to support its portfolio in Japan.

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First REIT said its Indonesia and Singapore portfolio saw higher rental income during the perio because of the “built-in rent escalation lease structure, offset by the absence of rental income from Siloam Hospitals Surabaya which was divested in September 2022 and the depreciation of foreign currencies against the Singapore Dollar.”

It has 14 hospitals in Indonesia and three nursing homes in Singapore.

Meanwhile, its distribution per unit was down 6.1% YoY to $0.62 cents due to higher financing costs and the depreciation of foreign currencies against the Singaporean dollar.