The manager of First REIT has reported a distribution per unit (DPU) of 0.58 cents for the 1QFY2025 ended March 31, 2025, down 3.3% y-o-y.

The REIT's net property and other income for the reporting period came in 2.8% y-o-y lower at $24.6 million.

It reported a lower rental income of $25.4 million for 1QFY2025, down 2.8% y-o-y. Consequently, distributable amount came in 2.2% y-o-y lower at $12.2 million.

The REIT says that this decrease in rental and other income was attributable to the depreciation of Indonesian rupiah and Japanese yen against the Singapore dollar. This was partly offset by higher rental income from Indonesia and Singapore properties.

The lower DPU is mainly due to direct impact arising from foreign currencies depreciation and enlarged unit base resulting from the issuance of units for payment of management fee to the manager of the REIT.

As at March 31, the REITs gearing ratio rose to 40.7%, and interest coverage ratio came in at 3.8 times. About 56.7% of the REIT's debt portfolio was either on fixed rates or hedged.

The REIT notes that global debt markets face an uncertain outlook, and uncertainty in the broader economic landscape contributes to volatility in interest rate trajectories and disrupts dynamics within the debt market.

The manager recognises the importance of effective interest rate and foreign currency exposure management and remains committed to prioritising these areas while navigating the challenges of the global economic environment, First REIT notes.

Units in First REIT closed flat at 25.5 cents on Apr 29.