First REIT's 3Q FY24 Result Review

$First Reit(AW9U.SI)$

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue, NPI, distributable amount, and DPU declined YoY, primarily due to the depreciation of the Indonesian Rupiah and Japanese Yen against SGD.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Favorable

• REIT Manager's Shareholding: Favorable

• Directors of REIT Manager's Shareholding: Favorable

Lease Profile

• Occupancy: Favorable

• Income Received in SGD/Major Currencies: Less Favorable

• WALE: Less Favorable

• Highest Lease Expiry in 4 Years: Favorable

• Weighted Average Land Lease Expiry: Moderate

Debt Profile

• Gearing Ratio: Moderate

• Cost of Debt: Less Favorable

• Fixed Rate Debt %: Favorable

• Unsecured Debt %: Less Favorable

• WADM: Moderate 

• Highest Debt Maturity in 4 Years: Less Favorable

• Interest Coverage Ratio: Favorable 

Diversification Profile

• Top Geographical Contribution: Favorable

• Top Property Contribution: Favorable

• Top 5 Properties' Contribution: Favorable

• Top Tenant Contribution: Less Favorable

• Top 10 Tenants' Contribution: Less Favorable

Key Financial Metrics

• Property Yield: Favorable

• Management Fees over Operating Distributable Income: Less Favorable

• Operating Distributable Income on Capital: Favorable

• Operating Distributable Income Margin: Favorable

• Operating Distribution Proportion: Moderate

DPU Breakdown

• TTM Distribution Breakdown:91% from Operation8.7% from Management Fees Paid in Units0.2% being Retained

Trends (Up to 10 Years)

• Uptrend: Property Yield

• Slight Uptrend: Operating Distribution Proportion

• Flat: Committed Occupancy

• Downtrend: DPU from Operation, NAV per Unit, Adjusted Interest Coverage Ratio, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y, 3y, 5y & 10y

• P/NAV: Average for 1y, 3y, 5y & 10y

Author's Opinion

Performance has declined slightly compared to the previous quarter. PT Metropolis Propertindo Utama's outstanding rental has grown to S$7.9 million, and the manager is engaging with them on repayment. There is no debt refinancing requirement until May 2026; however, the debt maturity is also concentrated in 2026.

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my own findings and should not be considered as professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decision.