Broker Name: OCBC Group Research
Date of Report: 6 February 2026
Excerpt from OCBC Group Research report.
Report Summary
- First REIT’s FY25 distribution per unit (DPU) fell 8.1% year-on-year to 2.17 Singapore cents, though it was slightly above expectations.
- The REIT faced persistent currency headwinds, particularly from IDR (Indonesian Rupiah) and JPY (Japanese Yen), impacting both financial performance and portfolio valuation.
- Portfolio consists of 31 healthcare properties in Singapore, Japan, and Indonesia, with a long weighted average lease expiry of 10 years and built-in rental escalation clauses.
- Gearing increased to 42.1% due to portfolio valuation decline, with cost of debt expected to remain stable in FY26.
- Management is in a strategic review considering a preliminary non-binding letter of intent from PT Siloam International Hospitals Tbk to acquire Indonesian hospital assets.
- OCBC Group Research maintains a HOLD rating and revised fair value estimate to SGD0.245, citing ongoing strategic review and cautious outlook due to currency volatility.
- Potential catalysts include asset divestments, stronger financial performance at Siloam, and favorable lease negotiations; key risks are further currency depreciation, tenant default, and execution risks.
- First REIT is managed by First REIT Management Limited, sponsored by OUE Limited and OUE Healthcare Limited, with a strong Asia healthcare network and right of first refusal over additional hospital assets.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC website: https://www.ocbc.com
