- 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
- - Read this at SGinvestors.io -
- 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
- Read more at SGinvestors.io.
