It is interesting to see the financial announcement from First REIT shouting out "First REIT achieves stable DPU of 2.15 cents for Q3 2019". As with all marketing techniques, highlight the good extensively but downplay the bad news. Despite maintaining the quarter DPU to 2.15 cents, rental and other income for the quarter dipped 1.5% YoY to S$28.8Mil as a result of lower variable rental component for the Indonesian hospitals. In addition, net property income dipped 2.5% YoY to S$28.3Mil due to higher property expenses for its South Korea and Indonesia properties.
Does the decline in property income signal trend of worsening performance of Indonesian Hospitals? Results released does not seemed to be too well in terms of organic growth and maybe the start of a worsening trend. This will greatly affect what the expiring lease for 5 hospitals and hotel/Country Club can offer for upcoming rental renewal...
4.5