First REIT's Net Property Income Drops 6.0% YoY in 9M 2024

First REIT, Singapore's first healthcare REIT, has reported a 6.0% year-on-year decline in net property income for the nine months ended 30 September 2024. The drop was primarily attributed to currency depreciation, particularly the Japanese Yen and Indonesian Rupiah against the Singapore Dollar. However, the Trust's fundamentals remain solid, with a healthy gearing ratio and interest coverage ratio, indicating resilience amidst market uncertainties.

First REIT's net property income decline was driven by currency depreciation, with the Indonesian Rupiah and Japanese Yen depreciating against the Singapore Dollar by 3.5% and 10.9% respectively. This currency impact was partly offset by higher rental income in local currency terms from Indonesian and Singapore properties. Despite the drop, First REIT's distributable amount and distribution per unit (DPU) remained resilient, demonstrating the Trust's ability to navigate currency fluctuations.


First REIT's diversified portfolio across Singapore, Japan, and Indonesia, along with its strategic focus on healthcare assets, positions it well to capitalize on long-term growth opportunities. The Trust's 2.0 Growth Strategy aims to diversify into developed markets, reshape its portfolio for capital-efficient growth, strengthen its capital structure, and pivot to megatrends. This strategy, coupled with the Trust's resilient performance amidst currency fluctuations, underscores its potential for future growth.


In conclusion, First REIT's net property income decline in 9M 2024 was primarily due to currency depreciation, which was partly offset by higher rental income in local currency terms from Indonesian and Singapore properties. The Trust's fundamentals remain solid, and its 2.0 Growth Strategy positions it well for future growth. Investors should monitor First REIT's performance closely, as it continues to navigate market uncertainties and capitalize on long-term growth opportunities in the healthcare sector.