First REIT Announces Further Partial Hedging of Siloam Divestment Consideration to Mitigate IDR/SGD Currency Risk

First REIT Announces Further Partial Hedging of Siloam Divestment Consideration

Key Highlights

Further FX Hedging Executed: First REIT, managed by First REIT Management Limited, has entered into an additional deal contingent non-deliverable foreign exchange (FX) forward transaction to hedge IDR1 trillion (approx. 19.5%) of the Siloam Divestment Consideration.
Aggregate Hedging Now at 95%: With this transaction, First REIT has now hedged IDR4.85 trillion, representing approximately 95% of the Siloam Divestment Consideration.
Hedging Baseline Rate: The new FX forward uses a baseline spot rate of IDR14,100 per S\$1.00, adjusted by a forward swap rate based on the actual settlement date.
Rationale: The hedging aims to mitigate the impact of volatility in the IDR/SGD exchange rate, which could otherwise reduce the expected SGD amount from divestment proceeds and subsequently affect the Special Distribution to unitholders.
Special Distribution Impact: The amount of Special Distribution to unitholders depends on the premium of the divestment consideration over independent valuations. Exchange rate volatility could influence this amount.
Ongoing Monitoring: The Manager will continue to monitor the IDR/SGD rate and provide updates if there are further material developments.

Important Details for Shareholders

Price Sensitivity: The decision to hedge 95% of the IDR-denominated divestment proceeds is significant, as it reduces currency risk that could negatively impact the value of the Special Distribution and, by extension, the REIT’s unit price.
No Hedging for SGD Portion: The Non-Core Divestment Consideration, being denominated in SGD, does not require hedging.
Potential for Further Announcements: Shareholders should watch for further announcements, especially if there is increased volatility or material developments regarding the FX market or divestment completion.
Financial Impact: The proactive hedging strategy demonstrates prudent risk management, which could be viewed positively by the market, especially given the ongoing volatility in emerging market currencies.
Unit Trading: Investors can only trade units on the SGX-ST; there is no right to redeem units directly with the Manager.

Details of the Hedging Arrangements

As part of the Proposed Divestments, First REIT will receive proceeds in both IDR and SGD. The Siloam Divestment Consideration amounts to IDR5.1 trillion (subject to completion adjustments). To protect against foreign exchange losses, the Manager has implemented the following:

Initial hedging arrangements covered 75.2% of the Siloam Divestment Consideration.
The additional FX forward now covers a further 19.5% (IDR1 trillion).
In total, 95% of the IDR-denominated proceeds are hedged, with a baseline spot rate set at IDR14,100 per S\$1.00, subject to adjustment based on actual settlement timing.
No hedging is required for the Non-Core Divestment Consideration since it is denominated in SGD.

The primary goal is to shield unitholders from the risk of IDR weakness during the anticipated period of payment, as this could reduce the SGD amount available for Special Distribution. The Special Distribution is the difference between the aggregate divestment consideration and the average independent valuation of the divested Indonesian properties.

Potential Price-Moving Information

Currency Risk Mitigated: By locking in the majority of the expected proceeds at a known exchange rate, the REIT reduces uncertainty regarding the amount of distributable income, which can anchor unit price expectations.
Special Distribution Visibility: The move provides greater clarity on the quantum of the upcoming Special Distribution, which is a key driver of near-term returns for unitholders.
Market Perception: The Manager’s proactive approach to risk management could be positively received by the market, particularly in the current environment of emerging market currency volatility.

Ongoing Disclosure

The Manager has committed to keeping investors informed of any further material changes, in compliance with SGX-ST listing rules. Investors should stay alert for updates regarding the completion of the divestments and any changes in the IDR/SGD FX environment.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. The value of REIT units and income derived from them can fluctuate. Past performance is not indicative of future results. Investors should consider their own circumstances and consult their financial advisors before making any investment decisions. The information herein may contain forward-looking statements subject to various risks and uncertainties.

印尼首创房地产信托进一步对Siloam剥离对价进行部分套期保值

主要亮点

进一步外汇套期保值： 首创房地产信托（First REIT）管理人已签订额外的远期外汇合约，对Siloam剥离对价中的1000亿印尼盾（约占19.5%）进行保值。
合计套保比例达95%： 截至本公告，已对总计48500亿印尼盾（约95%对价）进行了套保。
基准汇率： 本次远期合约基准汇率为每新币14,100印尼盾，具体汇率将依结算日的远期掉期率调整。
套保理由： 管理人通过此举应对印尼盾/新币汇率的持续波动，防止汇率贬值影响分配金额，保护持有人利益。
特别分配影响： 特别分配金额取决于剥离对价与独立估值之间的溢价，汇率波动会影响分配金额。
持续监控： 管理人将继续关注汇率变动，并在有重大进展时及时披露信息。

股东需要关注的重要事项

价格敏感信息： 套保95%的对价大幅降低了因汇率波动导致特别分配减少的风险，对REIT价格具有正面影响。
新币部分无需套保： 非核心剥离对价以新币计价，无需外汇套保。
潜在新公告： 若汇率波动加剧或出现其他重大事项，管理人将及时公告，投资者应密切关注。
财务影响： 主动管理汇率风险，有助于稳定分配预期，有望获得市场正面反应。
交易方式： 投资者只能通过新加坡交易所买卖份额，不能要求管理人赎回份额。

套期保值安排具体细节

最初对75.2%剥离对价进行套保。
本次新增套保覆盖19.5%（1000亿印尼盾）。
总计95%印尼盾对价已锁定汇率，基准汇率14,100。
非核心对价为新币，无需套保。

此举旨在对冲剥离期间印尼盾贬值风险，维护特别分配金额的稳定，分配金额为剥离对价超出独立估值部分。

可能影响价格的信息

汇率风险降低： 主动锁定汇率，提升分配金额的可预见性，支撑REIT价格。
分配预期明确： 提供特别分配金额的更大确定性，有助于投资者决策。
市场反应： 风险管理措施有望获得市场积极认可。

持续信息披露

管理人承诺若有重要进展将及时公告，建议投资者持续关注相关信息。

免责声明

本文仅供参考，不构成投资建议或买卖任何证券的要约。REIT份额及其收益可能涨跌，过往业绩不代表未来表现。投资者须根据自身情况审慎决策，并咨询专业财务顾问。部分内容含前瞻性陈述，存在各种风险及不确定性。