First REIT - DPU down from Rupiah and Yen depreciation

Lower distribution per unit (DPU)

First REIT reported a DPU of 0.52 Singapore cents for 3Q2025, bringing total DPU for 9M2025 to 1.65 cents, down 7.3% year-on-year. 

The decline was mainly due to currency depreciation of the Indonesian Rupiah and Japanese Yen against the Singapore Dollar, as well as a larger unit base following the issuance of management fee units. 

Higher rental income from healthcare assets in Indonesia and Singapore

For the nine months ended 30 September 2025, rental and other income declined 2.0% year-on-year to S$75.5 million, while net property income fell 1.4% to S$73.3 million. 

In local currency terms, however, rental income rose 5.5% in Indonesia and remained stable in Japan, with Singapore up 2.0%, reflecting resilience of healthcare assets despite FX headwinds. 

The distributable amount decreased 6.1% to S$34.8 million, driven mainly by currency translation effects.

Updates on rental arrears from PT Metropolis Propertindo Utama (MPU)

The rental arrears from PT Metropolis Propertindo Utama (PT MPU) stood at approximately S$6.0 million, but the tenant has been progressively making repayments since July 2025, with S$2.1 million received in 3Q2025. 

The Manager continues to engage closely with PT MPU, while Siloam’s rental deposits remain sufficient to cover the arrears related to its hospital master leases.

Lower finance costs 

The REIT maintained a sound balance sheet, with gearing at 41.4%, interest coverage at 3.8x, and cost of debt easing to 4.6%. 

About half its borrowings (49.5%) are fixed or hedged, and there are no refinancing requirements until May 2026, providing near-term financial stability. 

Net asset value per unit stood at 26.15 cents at end-September, down from 28.60 cents at end-2024, largely due to FX translation losses.

Proposed divestment of Imperial Aryaduta Hotel & Country Club (IAHCC)

In October 2025, the Manager also announced the proposed divestment of Imperial Aryaduta Hotel & Country Club for Rp.332.2 billion (S$25.9 million). 

The sale, representing a 22.2% premium over its original purchase price, is part of efforts to unlock value from non-core assets and enhance balance sheet flexibility. 

Net proceeds of approximately S$25.5 million will be used to repay debt or fund working capital needs. 

Excluding IAHCC, the WALE as at 30 September 2025 stands at 10.2 years.

Maintain NEUTRAL

First REIT continues to face near-term challenges from the weaker Rupiah and Yen, alongside uncertainties surrounding MPU’s rental arrears. 

These factors have contributed to a 7.3% decline in DPU for 9M2025. 

We maintain our NEUTRAL view and have adjusted our target price slightly lower to S$0.25 (from S$0.26). 

Related links:

• First REIT share price history and share price target
• First REIT history and dividend forecasts

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