First REIT - OCBC Investment 2024-04-25: FX Headwinds Continue To Bite

First REIT - FX Headwinds Continue To Bite

First REIT (SGX:AW9U) | SGinvestors.ioFirst REIT (SGX:AW9U)
  • First REIT (SGX:AW9U)'s 1Q24 rental income and net property income (NPI) declined by 2.7% and 2.1% y-o-y ( y-o-y) to S$26.1m and S$25.3m, respectively. This was largely due to S$ appreciation against IDR and JPY.

1Q24 results missed our expectations on FX headwinds

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  • Coupled with higher financing costs, distributable income (DI) for the quarter slipped 2.2% to S$12.4m, while First REIT's DPU dropped by a larger 3.2% due to an enlarged unit base to 0.60 Singapore cents – representing 24% of our initial forecast.

Credit metrics remain stable

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  • In terms of interest rate sensitivity, a 50bps and 100bps increase in floating rates are estimated to weigh on distributable income by S$0.3m and S$0.6m, respectively.
  • Management also continues to engage PT Metropolis Propertindo Utama (MPU) to recover rentals outstanding of ~S$5.2m as at 31 Mar 2024.

S$ could strengthen further

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Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @

Ada Lim OCBC Investment Research | 2024-04-25

Previous report by OCBC:
2024-02-21 First REIT - Stable Condition.

Price targets by 2 other brokers at First REIT Target Prices.

Listing of research reports at First REIT Analyst Reports.

Relevant links:
First REIT Share Price History,
First REIT Announcements,
First REIT Dividends & Corporate Actions,
First REIT News Articles


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