First REIT DPU down 3.2% in Q1

Foreign exchange rates and interest rates impacted First REIT’s financials in the first quarter of 2024.

First REIT reported a distribution per unit of 0.60 cents in Q1, down 3.2% versus the same period last year. 

In a bourse filing, the real estate investment trust also said its net property and other income fell 2.1% to $25.3m in the first three months of 2024. Meanwhile, rental and other income fell 2.7% to $26.1m in 1Q24.

First REIT said its 1Q2024 financial performance was impacted by a stronger Singapore Dollar against the Indonesia Rupiah and the Japanese Yen. This currency impact was offset by higher rental income in local currency from assets in Indonesia and Singapore as well as stable rental income in local currency from assets in Japan, it explained.

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Rising interest rates, meanwhile, increased the cost of debt to 5% in the first quarter from 4.7% a year ago. This pulled First REIT’s distributable income by 2.2% to $12.4 million last quarter.

First REIT said it is closely monitoring hedging net cashflow from Indonesia and Japan per its policy. It is also focused on its 2.0 Growth Strategy, with a target for developed markets to comprise more than 50% of its portfolio by FY2027.