First Real Estate Investment Trust (First REIT) on Monday reported a total return attributable to unitholders of S$15.7 million for the six months ended Jun 30, down 32.2 per cent year-on-year, after currency depreciation and earlier asset sales cut into rental income.

The healthcare-focused landlord’s revenue fell 8.3 per cent to S$46.3 million, reflecting the divestment of PT Karya Sentra Sejahtera last year and the weaker Indonesian rupiah and Japanese yen. Distribution per unit (DPU) for the half came in at 0.98 Singapore cent, compared with 1.13 cent a year earlier. A second-quarter DPU of 0.48 cent – comprising 0.03 cent of taxable income, 0.16 cent of tax-exempt income and 0.29 cent of capital distribution – will be paid on Sept 23 to unitholders on record as at Aug 13.

By geography, Indonesia remained the trust’s largest contributor, delivering S$37.9 million in net property and other income before tax, followed by Japan at S$5.3 million and Singapore at S$1.9 million. Group finance costs eased 12.9 per cent to S$9.5 million on lower interest rates, but foreign-exchange losses widened marginally to S$3.8 million.

First REIT is proceeding with the divestment of 11 non-core Indonesian assets, a transaction approved by unitholders on Jun 23 and expected to close in the second half. It has also secured put options that could see the sale of six additional hospitals, subject to future approval. The trust drew down S$16 million in new debt during the half, partly to fund its early-January redemption of S$60 million in perpetual securities, and in July obtained covenant waivers from lenders amid currency volatility.

Looking ahead, management highlighted ongoing macroeconomic challenges, including a lower International Monetary Fund 2026 global growth forecast of 3.0 per cent and persistent inflationary pressures. It expects the Indonesian rupiah and Japanese yen to stay under pressure, and has entered into IDR/SGD forward contracts covering about 45 per cent of its Indonesian property values to mitigate foreign-exchange risks.