First Reit Q4FY16

Siloam Hospitals Labuan Bajo - completed on 30th Dec 2016

1. 15 years lease and option to renew further for 15 years if exercised.
2. Base rent of $1.85 million and will only subject to increase every year after 5 years which will be end 2021. The increase will be at a rate equal to twice the percentage increase of the Singapore CPI subject to a floor of 0-2%. Another cap in place is the increase subject to max of 5% per 5 years.
3. Base rent will form the main bulk of the total rent which required to achieves Fist Reit's required returned.
4. No variable rent for the initial 5 years, variable rent will be based on the gross operating revenue growth.

Using the assumption used in the announcement on the Pro Forma DPU in FY2015 and outstanding shares of 772,320,491 for FY2016, It will contribute around or less 0.029 cents for FY17 dividend.

Debt

1. Increase to 31.1% as at 31 Dec 2016 due to acquisition of SHLB.
2. Issues $60m of subordinated perpetual securities at 5.68% p.a for 5 years
3. 92.3% of the debt is on fixed rate basis
4. With the debt of $142.5m in 2017 and $149.5m in 2018, will need to see the refinancing rate if it will be higher than the current effective interest rate.
• You can read from the FY2015 Annual report from page 85 onward to find out more on the debt 

Below are taken from AR FY2015

Dividend

Year on year growth is 2% which is mainly come from acquisition of Kupang property in end of FY2015. Nothing much to be expected except from new acquisition as the increase of base rent of existing properties are based on CPI. Increase in interest rate might impact the dividend for FY17 and net off the contribution from SHLB.


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