Financial Statements And Related Announcement :: Full Yearly Results

FIRST REAL ESTATE INVESTMENT TRUST 2016 FULL YEAR UNAUDITED FINANCIAL STATEMENTS & DISTRIBUTION ANNOUNCEMENT

First Real Estate Investment Trust ("First REIT") is a real estate investment trust constituted by the Trust Deed entered into on 19 October 2006 between Bowsprit Capital Corporation Limited as the Manager and HSBC Institutional Trust Services (Singapore) Limited as the Trustee. First REIT was listed on the Singapore Exchange Securities Trading Limited on 11 December 2006.

First REIT is Singapore's first healthcare real estate investment trust that aims to invest in a diversified portfolio of income-producing real estate and / or real estate-related assets in Asia that are primarily used for healthcare and / or healthcare-related purposes.

Managed by Bowsprit Capital Corporation Limited, First REIT's portfolio consists of eighteen properties located in Indonesia, Singapore and South Korea, namely 1) Siloam Hospitals Lippo Village, 2) Siloam Hospitals Kebon Jeruk, 3) Siloam Hospitals Surabaya, 4) Imperial Aryaduta Hotel & Country Club, 5) Mochtar Riady Comprehensive Cancer Centre, 6) Siloam Hospitals Lippo Cikarang, 7) Siloam Hospitals Manado & Hotel Aryaduta Manado, 8) Siloam Hospitals Makassar, 9) Siloam Hospitals Bali, 10) Siloam Hospitals TB Simatupang, 11) Siloam Hospitals Purwakarta, 12) Siloam Sriwijaya, 13) Siloam Hospitals Kupang & Lippo Plaza Kupang, 14) Siloam Hospitals Labuan Bajo,15) Pacific Healthcare Nursing Home @ Bukit Merah, 16) Pacific Healthcare Nursing Home II @ Bukit Panjang, 17) The Lentor Residence and

1. Sarang Hospital.

   Its hospital assets in Indonesia are operated by PT Siloam International Hospitals Tbk, a subsidiary of PT Lippo Karawaci Tbk, a strong brand name in the Indonesian healthcare industry supported by a team of international healthcare professionals whereas The Imperial Aryaduta Hotel & Country Club and Hotel Aryaduta Manado are operated by The Aryaduta Hotel and Resort Group. The Lippo Plaza Kupang is managed by PT Lippo Malls Indonesia. In Singapore, the nursing homes at Bukit Merah and Bukit Panjang are operated by Pacific Healthcare Nursing Home Pte. Ltd. and Pacific Eldercare and Nursing Pte. Ltd., respectively. The Lentor Residence is operated by The Lentor Residence Pte. Ltd. In South Korea, the Sarang Hospital is operated by a private doctor.

   Through First REIT, investors can participate in an asset class that has a focus towards Asia's growing healthcare sector, which is boosted by an increase in life expectancy in Indonesia and the rest of Southeast Asia.

   Summary of First REIT's Results

   Group
   Quarter			Full Year
   4Q 2016	4Q 2015	Change	31 Dec 2016	31 Dec 2015	Change
   S$'000	S$'000	%	S$'000	S$'000	%
   26,988	25,675	5.1%	107,017	100,698	6.3%
   26,686	25,374	5.2%	105,835	99,276	6.6%
   16,514	15,711	5.1%	65,248	61,923	5.4%
   2.13	2.09	1.9%	8.47	8.301	2.0%
   8.47	8.301	2.0%	8.47	8.301	2.0%

   Gross Revenue Net Property Income

   Distributable Amount

   Distribution per unit (cts)

   Annualised Distribution per unit (cts)

   Note:

2. Actual distribution paid for FY 2015.

Distribution Details

Distribution	1 October 2016 to 31 December 2016
Distribution type	Taxable income Tax-exempt income ) Capital distribution
Distribution rate	Total : 2.13 cents per unit Taxable income distribution - 0.07 cents per unit Tax-exempt income distribution - 1.16 cents per unit ) Capital distribution - 0.90 cents per unit
Book closure date	26 January 2017 at 5.00 pm
Ex-dividend date	24 January 2017 at 9.00 am
Payment date	28 February 2017

Distribution Reinvestment Plan ("DRP")

The DRP will apply to the above distribution. The Manager will announce the pricing of the DRP units to be issued which will be based on the market price less a discount of 3% (similar to previous DRPs) on 26 January 2017.

Overseas unitholders who wish to be eligible to participate in the DRP should provide an address in Singapore for service of notices and documents to the Manager c/o The Central Depository Pte Limited ("CDP"), 9 North Buona Vista Drive #01-19/20 The Metropolis Singapore 138588, not later than three market days prior to the book closure date. Unitholders should note that all correspondences and notices will be sent to their last registered address with CDP. 1(a)(i) Statement of Comprehensive Income

Group
Quarter			Full Year
Note	4Q 2016	4Q 2015	Change	31 Dec 2016	31 Dec 2015	Change
1	S$'000	S$'000	%	S$'000	S$'000	%
	26,988	25,675	5.1%	107,017	100,698	6.3%
	(302)	(301)	0.3%	(1,182)	(1,422)	(16.9%)
	26,686	25,374	5.2%	105,835	99,276	6.6%
	333	50	566.0%	1,131	231	389.6%
2	(2,685)	(2,542)	5.6%	(10,584)	(9,881)	7.1%
	(101)	(95)	6.3%	(398)	(372)	7.0%
	(4,204)	(4,327)	(2.8%)	(17,768)	(16,538)	7.4%
	(1,774)	(123)	NM	(3,318)	(2,738)	21.2%
3	18,255	18,337	(0.4%)	74,898	69,978	7.0%
	-	-	-	512	-	NM
	(8,915)	24,168	NM	(8,915)	24,168	NM
4	934	391	138.9%	(2,249)	2,131	NM
5	10,274	42,896	(76.0%)	64,246	96,277	(33.3%)
	(10,823)	(16,791)	(35.5%)	(23,905)	(28,499)	(16.1%)
	(549)	26,105	NM	40,341	67,778	(40.5%)
	585	(80)	NM	143	598	(76.1%)
	36	26,025	(99.9%)	40,484	68,376	(40.8%)
	(1,408)	26,105	NM	38,688	67,778	(42.9%)
	859	-	NM	1,653	-	NM
	(549)	26,105	NM	40,341	67,778	(40.5%)

Gross revenue

Property operating expenses Net property income Interest income

Manager's management fees Trustee fees

Finance costs

Other expenses

Net income before the undernoted

Gain on divestment of investment property

Net fair value (losses)/gains on investment properties

Net change in fair value of derivative financial instruments Total return for the period/year

before income tax

Income tax expense

Total return for the period/year after income tax Other comprehensive income: Exchange differences on translating foreign operations, net of tax Total comprehensive income for the period/year Attributable:

Unitholders

Perpetual securities holders

Total return for the period/year after income tax

Note:

NM - Not meaningful

The results for 4Q 2016 includes the full quarter contribution from Siloam Hospitals Kupang & Lippo Plaza Kupang ("Kupang Property") which was acquired in December 2015, but it did not take into account the recent acquisition of Siloam Hospitals Labuan Bajo which was completed on 30 December 2016.

1. Interest income for 4Q 2016 increased to S$333,000 compared to 4Q 2015 mainly due to the return from the first progress payment made in March 2016 for the development works on the new Siloam Hospitals Surabaya.

2. Other expenses for 4Q 2016 increased to S$1.8 million compared to 4Q 2015 mainly due to the higher unrealised exchange loss from the USD loan and higher project expenses.

3. Net fair value losses on investment properties for 4Q 2016 of S$8.9 million was mainly due to prudent approach adopted by the Trust as a result of the negative Singapore Consumer Price Index for the recent years.

4. Net change in fair value of derivative financial instruments for 4Q 2016 relates to the revaluation gains on the interest rate swap contracts.

5. Income tax expenses for 4Q 2016 decreased to S$10.8 million compared to 4Q 2015 mainly due to lower provision for deferred taxation partly offset by higher current tax expenses.

1(a)(ii) Statement of Distribution
Group
Quarter	Full Year
Note	4Q 2016	4Q 2015	Change	31 Dec 2016	31 Dec 2015	Change
S$'000	S$'000	%	S$'000	S$'000	%
Total return for the period/year after income tax	(549)	26,105	NM	40,341	67,778	(40.5%)
Adjustments for tax purposes: - Manager's management fees settled in units	1,873	1,821	2.9%	7,148	6,706	6.6%
- Net fair value losses/(gains) on of investment properties, net of deferred tax	15,444	(11,326)	NM	15,444	(11,326)	NM
- Net change in fair value of derivative financial instruments	(934)	(391)	138.9%	2,249	(2,131)	NM
- Gain on divestment of investment property, net of tax	-	-	-	(122)	-	NM
- Costs related to proposed transaction of Siloam Hospitals Surabaya	-	-	-	787	-	NM
- Costs related to MTN Programme	-	-	NM	581	-	NM
- Amount reserved for distribution to perpetual securities holders	1	(859)	-	NM	(1,653)	-	NM
- Foreign exchange adjustment losses/(gain)	1,136	(141)	NM	461	1,283	(64.1%)
- Others	403	(357)	NM	12	(387)	NM
Total available for distribution to Unitholders	16,514	15,711	5.1%	65,248	61,923	5.4%
Unitholders' distribution:
as distribution from operations as distribution of Unitholders' capital contribution	9,572 6,942	8,907 6,804	7.5% 2.0%	37,648 27,600	36,412 25,511	3.4% 8.2%
Distributable amount to Unitholders	16,514	15,711	5.1%	65,248	61,923	5.4%

Note:

NM - Not meaningful