First Reit's Q2 DPU rises 15.8% to 1.91 cents

July 23, 2008
First Reit's Q2 DPU rises 15.8% to 1.91 cents

FIRST Real Estate Investment Trust (First Reit) said yesterday that
its distributable amount for the second quarter ended June 30 rose
16.1 per cent to $5.2 million from a year earlier.

This translates to distribution per unit (DPU) of 1.91 cents, up 15.8
per cent, said the Reit's manager, Bowsprit Capital Corporation.

For the half-year ended June 2008, First Reit's distributable amount
and DPU were $10.26 million and 3.76 cents respectively.

Based on annualised DPU of 7.62 cents and a unit closing price of
70.5 cents on July 18, First Reit's distribution yield is 10.81 per
cent - one of the highest among Singapore Reits, stocks and
government bonds, Bowsprit noted. The units closed half a cent higher
yesterday at 72 cents.

Driven by rent increases from its four Indonesian properties, as well
as rental income from its four Singapore properties acquired in 2007,
First Reit's gross revenue rose 15 per cent in Q2 to $7.5 million,
lifting its half-year gross revenue 19.3 per cent to $15 million.

First Reit is Singapore's first healthcare Reit. It aims to raise
assets under management (AUM) to $500 million by 2009 from the
current $326 million. 'First Reit will continue to seek opportunities
in the region including Singapore, Indonesia and China to raise its
AUM,' said Bowsprit. 'We have been selective in our acquisitions as
we want to ensure that our portfolio consists of only quality and
good-yielding healthcare assets that will provide consistent,
sustainable returns to unit holders.'

Apart from portfolio expansion, First Reit intends to improve the
income-generating capacity of its existing healthcare properties
through asset enhancement and by working with tenants to upgrade
services.

Despite current uncertain economic conditions, Bowsprit said that it
is 'optimistic' that First Reit will perform well in the second half
of the year, as its revenue is largely derived from long-term rental
leases. The current economic environment is also an opportunity for
making better acquisitions.