First Real Estate Investment Trust (First REIT) reported a net profit of S$28.98 million for the year ended 31 Dec 2025, down 21.1 per cent year-on-year, as foreign-exchange losses and lower revaluation gains offset stable operating income.

Earnings per unit slipped to 1.29 cents from 1.68 cents a year earlier. The manager declared a fourth-quarter distribution of 0.52 Singapore cent per unit, comprising 0.03 cent of taxable income, 0.17 cent of tax-exempt income and 0.32 cent of capital. The payout will be made on 30 Mar 2026 to unitholders on record as at 19 Feb 2026, with the units trading ex-distribution from 16 Feb 2026. Full-year distribution per unit (DPU) fell 8.1 per cent to 2.17 cents.

Revenue edged 1.6 per cent lower to S$100.53 million, as the depreciation of the Indonesian rupiah and Japanese yen against the Singapore dollar outweighed higher rental contributions from assets in Indonesia and Singapore. Net property and other income eased 1.1 per cent to S$97.34 million.

Indonesia remained the trust’s core market, generating S$82.95 million of rental and other income, or roughly 82 per cent of the total. Japan contributed S$13.35 million, while Singapore accounted for S$4.23 million. On a net property income basis, Indonesia delivered S$82.20 million, Japan S$11.37 million and Singapore S$3.77 million.

Headwinds during the year included S$8.31 million of foreign-exchange losses and S$3.53 million of fair-value losses on investment properties. In addition, the trust recognised a S$7.54 million loss on the divestment of its Indonesian subsidiary that owned the Imperial Aryaduta Hotel and Country Club. Finance costs declined 8.2 per cent to S$20.90 million following earlier refinancing, helping to cushion the earnings impact.

During the year First REIT drew down S$6.0 million in additional borrowings, refinanced a S$247 million social term loan due in 2026 and maintained an aggregate leverage ratio of 42.1 per cent. It also announced the full redemption of its S$60 million perpetual securities in January 2026, aiming to streamline its capital structure.

Looking ahead, the manager said it is in discussions with lenders to extend and refinance loans maturing in 2026 amid continued currency volatility and higher interest-rate expectations in Indonesia and Japan. The trust intends to focus on strengthening its balance sheet and expanding its 31-asset healthcare portfolio across Asia while sustaining regular distributions to unitholders.