- First REIT's 2Q25/1H25 DPU of 0.55/1.13 Singapore cents (-8.3%/-5.8 y-o-y) was slightly below our estimates, forming 23%/48% of our FY25e forecast. The y-o-y decline in DPU was due to the depreciation of the IDR and JPY against the S$, partially offset by higher rental income in local currency terms.
- - Read this at SGinvestors.io -
The Positives
Resilient operations.
- In 1H25, rental income from Indonesia grew 5.5% y-o-y in local currency terms, exceeding the 4.5% base rent escalation due to higher contributions from performance-based rent. Rental income in Singapore grew 2%, while income from Japan remained stable y-o-y in local currency terms.
Stable capital management.
- - Read this at SGinvestors.io -
- With only 56.2% of debt hedged to fixed rates, we expect a marginal decline in interest costs in FY25e.
The Negative
Rentals continue to be owed by MPU.
- Read more at SGinvestors.io.
