First REIT - OCBC Group Research 2026-02-06: Pending Winds Of Change

• First REIT (SGX:AW9U)’s FY25 rental income and net property income (NPI) declined 1.6% and 1.1% y-o-y to S$100.5m and S$97.3m, respectively. The decrease was attributed to IDR and JPY depreciation, as rental income from the Indonesia portfolio would have grown 5.1%, while that from the Japan portfolio would have been flat in local currency terms.

4Q25 DPU of 0.52 Singapore cents was flat q-o-q and is due to be paid out on 30 Mar 2026.

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Gearing is slightly elevated, in our view, with cost of debt expected to remain stable in FY26.

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• All-in cost of debt improved another 10 basis points (bps) over the quarter to 4.5%, with 46.1% of debt on fixed rates or hedged.
• With a substantial debt tower coming due in FY26, management shared that it is currently in discussions with lenders to extend a S$246.7m term loan due May 2026 by two years, and to refinance a S$13.8m Shinsei Social Loan due Sep 2026. Altogether, cost of debt is likely to remain stable in FY26.

Revised fair value estimate of S$0.245.

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Above is an excerpt from a report by OCBC Group Research.
Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.

Previous report by OCBC:
2025-11-03 First REIT - Interest Cost Savings Outpaced By SGD Appreciation.

Price targets by 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 Dividend Payout Dates & Corporate Actions,
First REIT News