First Real Estate Investment Trust to Sell Indonesian Portfolio for 471.5 Million Singapore Dollars

SGX Filings
06/15

First Real Estate Investment Trust (AW9U), managed by First REIT Management Limited, announced on Jun, 16 2026 that it has signed definitive agreements to divest all of its Indonesian properties.

The plan involves selling eight hospital assets to PT Siloam International Hospitals Tbk for about 389.2 million Singapore dollars and three non-core properties to PT Lippo Karawaci Tbk and PT Bumi Sarana Sejahtera for roughly 82.4 million Singapore dollars. The combined consideration of approximately 471.5 million Singapore dollars represents a 2.1% premium to the average of two independent valuations.

Siloam has also granted the REIT a put option, exercisable until Oct, 31 2026, to sell six remaining Indonesian hospitals for up to 294.8 million Singapore dollars, which would complete the REIT’s exit from Indonesia.

Proceeds will be used to repay existing borrowings, meet working-capital needs and fund a special distribution of 9.7 million Singapore dollars to unitholders. Post-transaction, pro-forma aggregate leverage is expected to drop to 16.7% from 42.1%, with annual interest cost savings estimated at 18.8 million Singapore dollars. The special distribution is expected to support a pro-forma fiscal-2025 distribution per unit of 2.02 cents, implying an 8.08% yield based on a 0.25 Singapore dollar unit price.

An extraordinary general meeting on Jun, 23 2026 will seek independent unitholder approval for the hospital and non-core divestments, which are inter-conditional. Subject to approval, completion is targeted for Aug, 2026. The independent financial adviser has opined that the terms are on normal commercial conditions and not prejudicial to minority unitholders.

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