First REIT FY2025 Financial Results: Portfolio Overview, 2.17 Cents DPU & 7.9% Distribution Yield

First REIT FY2025 Financial Results: An In-Depth Analysis

First Real Estate Investment Trust (First REIT), Singapore’s pioneering healthcare REIT, released its FY2025 financial results. This article analyzes the key metrics, highlights portfolio developments, and provides actionable insights for investors based strictly on the company’s official disclosures.

Key Financial Metrics & Performance Trends

Metric	FY2025	FY2024	YoY Change
Rental & Other Income	S\$100.5m	S\$102.2m	-1.6%
Net Property & Other Income	S\$97.3m	S\$98.5m	-1.1%
Distributable Amount	S\$45.8m	S\$49.3m	-7.1%
Distribution Per Unit (DPU)	2.17 cents	2.36 cents	-8.1%
Net Asset Value (NAV) per Unit	24.97 cents	28.60 cents	-12.7%
Distribution Yield	7.9%	—	—
Gearing Ratio	42.1%	39.6%	+2.5 pts
All-in Cost of Debt	4.5%	5.0%	-0.5 pts

Quarter-on-quarter data is not disclosed except for DPU, which remained stable at 0.52 Singapore cents in 4Q2025 compared to the previous quarter.

Dividend & Distribution Summary

Distribution	FY2025	FY2024	QoQ Change (4Q2025 vs 3Q2025)
Distribution Per Unit (DPU)	2.17 cents	2.36 cents	Stable at 0.52 cents
Distribution Yield	7.9%	—	—

Portfolio Overview & Developments

Portfolio Value: S\$1.02 billion, across 31 healthcare assets in Indonesia, Japan, and Singapore.
Divestment: Imperial Aryaduta Hotel & Country Club was divested in December 2025.
Occupancy: 100%, reflecting stable asset utilization.
WALE: 10 years, with only 13.4% of leases expiring within the next 5 years.
Gearing: Increased to 42.1%, with total debt of S\$458.0 million. Weighted average term to maturity decreased to 1.5 years, and the REIT is currently in discussions to extend/refinance loans due in 2026.

Exceptional Items & Asset Revaluation

Currency Impact: FY2025 results were negatively impacted by depreciation of the Indonesian Rupiah and Japanese Yen against the Singapore Dollar.
Portfolio Valuation: In local currency terms, the Indonesia portfolio saw a marginal increase in rent, but SGD-valued assets declined due to FX weakness and decreasing land tenure in Singapore.
Asset Sale: The divestment of Imperial Aryaduta Hotel & Country Club reduced total asset values and unitholders’ funds.

Macroeconomic & Strategic Outlook

The report notes weakening global economic momentum and continued divergence across regions. Currency weakness in Indonesia and Japan is expected to persist, posing risks to performance. Elevated public debt levels in major economies could increase borrowing costs and market volatility. The Board is undertaking a strategic review to consider all options including joint ventures, asset acquisitions/divestments, and remains committed to updating unitholders on material developments.

Chairman’s Statement

The Chairman’s Statement is not explicitly quoted in the report; however, the tone of the “Outlook” and “Strategic Review” sections is cautious and realistic, focusing on risks and ongoing review rather than optimism.

Errors, Inconsistencies & Notable Fund Flows

No material errors or inconsistencies are highlighted in the report.
Increase in current liabilities due to loan reclassification; refinancing discussions underway.
Units in issue increased by 0.8% due to manager fees and divestment fee payments in units, resulting in mild dilution.

Conclusion & Investor Recommendations

The FY2025 results reflect a challenging macroeconomic environment, with mild declines in rental income, net property income, and DPU. The portfolio remains resilient with stable occupancy and long WALE, but currency headwinds and rising gearing present risks. Ongoing strategic review and refinancing efforts signal a cautious approach to navigating future uncertainties.

Recommendation for Current Holders

If you are currently holding First REIT units, consider maintaining your position but closely monitor developments on loan refinancing and the strategic review. The stable occupancy and relatively high distribution yield (7.9%) are positives, but further FX weakness or delays in refinancing could pressure distributions and asset values.

Recommendation for Prospective Investors

If you are not currently holding First REIT, wait for clarity on loan refinancing and the outcome of the strategic review. The current yield may be attractive, but macroeconomic and FX risks, coupled with rising gearing, suggest caution until more positive signals (such as successful refinancing or growth initiatives) emerge.

Disclaimer: These recommendations are based solely on the data and disclosures in the FY2025 financial report. They are not personalized investment advice. Investors should consider their own risk profiles and consult a qualified financial advisor before making any investment decisions.