First REIT Announces Divestment of Indirect Wholly Owned Subsidiary

Key Highlights for Investors

• Transaction: First REIT Management Limited, manager of First Real Estate Investment Trust (“First REIT”), has announced the completion of the divestment of its indirect wholly owned subsidiary, PT Karya Sentra Sejahtera (“PT KSS”).
• Date of Completion: The divestment was completed on 4 December 2025.
• Entities Involved: Lovage International Pte. Ltd. and IAHCC Investment Pte. Ltd. were the parties involved in the divestment of 100% of the issued and paid-up share capital of PT KSS.
• Asset Divested: The divestment relates to the Imperial Aryaduta Hotel & Country Club.
• Change in Subsidiary Status: Following this transaction, PT KSS has ceased to be an indirect wholly owned subsidiary of First REIT.

Important Information for Shareholders

• No Director/Controlling Unitholder Interest: None of the directors of the Manager nor controlling unitholders of First REIT have any direct or indirect interest in the transaction, except through their unitholdings in First REIT.
• Potential Price Sensitivity: The divestment of a subsidiary could impact First REIT’s asset portfolio, future income streams, and overall valuation. Investors should closely monitor subsequent announcements for further financial details, as such transactions can be price sensitive and may affect the share value based on market perception of First REIT’s strategy and asset management.
• Forward-Looking Statements: The announcement contains forward-looking statements regarding future performance and outcomes. These are subject to various risks and uncertainties, such as changes in economic conditions, interest rate trends, cost of capital, competition, property rental income, operating expenses, and government policy changes. Investors are advised not to place undue reliance on these statements.

Additional Details

• Trading and Redemption: Investors do not have the right to request the Manager to redeem their units while the units are listed. Trading can only be carried out through the Singapore Exchange (SGX-ST).
• Market Liquidity: Listing of the units on the SGX-ST does not guarantee a liquid market for the units, which may affect investors’ ability to trade efficiently.
• Investment Risks: Units in First REIT are subject to investment risks, including possible loss of principal. They are not guaranteed by the Manager or its affiliates.
• Past Performance: Historical performance is not necessarily indicative of future results.

Conclusion

The divestment of PT Karya Sentra Sejahtera marks a strategic shift in First REIT’s portfolio and may have implications for its future earnings and asset profile. Investors should remain alert to further updates and consider the associated risks and uncertainties when making investment decisions regarding First REIT units.

Disclaimer: This article is for informational purposes only and does not constitute an offer, solicitation, or advice to buy or sell securities. Investment in REITs involves risks, and past performance is not indicative of future performance. Investors are encouraged to conduct their own due diligence and consult with financial advisors before making investment decisions.

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