First REIT 2.0 Growth Strategy
The healthcare sector offers immense opportunities, underpinned by factors such as the structural demographic megatrend of ageing population, and a demand for quality healthcare services in markets that lack capacity.
To capture the immense opportunities in the healthcare sector, and to ensure sustainable long-term growth to maximise returns for all stakeholders, First REIT is guided by its ‘2.0 Growth Strategy’, comprising the following four well-defined strategic pillars:
Since unveiling First REIT 2.0 Growth Strategy in December 2021, First REIT has achieved numerous milestones as set out below.
FIRST REIT’S SIGNIFICANT EVENTS AND 2.0 GROWTH STRATEGY MILESTONES
Diversify intodeveloped markets
Reshape portfolio forcapital efficient growth
Strengthen capital structureto remain resilient
Pivoting to megatrends
Completed the acquisition of FRM Japan Management Co., Ltd (“FRMJM”), an asset management company that is licensed by the Tokyo Metropolitan Government, to support First REIT’s existing portfolio and future growth in the Japan market.
Completed an early refinancing of a Japanese Yen denominated Tokutei Mokuteki Kaisha bond with a new onshore banking institution. This further strengthened the REIT’s overall debt maturity profile, resulting in the REIT having no refinancing requirements until May 2026.
Renewed master lease for Imperial Aryaduta Hotel & Country Club (“IAHCC”) for one year. A further term of one year may be granted upon mutual agreement. IAHCC is a non-core asset which is being marketed for divestment. The renewed lease provides revenue stability from IAHCC while still allowing strategic flexibility.
Extended the Hak Guna Bangunan (HGB) title for Siloam Hospitals Lippo Cikarang for another 20 years to 5 May 2043
28th Jan
Received unitholders’ approval during an Extraordinary General Meeting (EGM) for the proposed acquisition of 12 nursing homes in Japan and for the proposed settlement in respect of the terminated development works adjacent to Siloam Hospitals Surabaya (SHS)
FY2021 results announcement; declared 4Q2021 DPU of 0.66 Singapore cents
Completed the acquisition of 12 nursing homes through acquisition of 100% of the issued and paid-up share capital of OUELH Japan Medical Facilities Pte. Ltd. and OUELH Japan Medical Assets Pte. Ltd., which are strategically located across Japan, a new market for First REIT
Successfully priced Singapore’s first healthcare social bond – S$100 million in aggregate principal amount with 3.25% annual coupon rate and guaranteed by Credit Guarantee and Investment Facility, a trust fund of the Asian Development Bank
Established the inaugural Social Finance Framework, which creates a platform for the issuance of bonds and loans granted on achieving specific social benefit outcomes and the United Nations Sustainability Development Goals
25th Apr
Convened 13th Annual General Meeting via webcast
1Q2022 business update announcement; declared DPU of 0.66 Singapore cents
18th May
Announced the proposed divestment of SHS
The agreed property value for SHS of Rp.430.0 billion represented a slight premium to the average of two independent valuations of SHS, which were derived using the discounted cash flow methodology
Cushman & Wakefield VHS Pte. Ltd., in conjunction with KJPP Firman Suryantoro Sugeng Suzy Hartomo & Rekan valued SHS at Rp.430.8 billion, while KJPP Willson & Rekan in association with Knight Frank valued SHS to be approximately Rp.428.3 billion
Received full settlement amount of S$30.6 million for the proposed settlement in respect of the terminated development works adjacent to SHS
Received unitholders’ approval during an EGM for the proposed divestment of SHS to Siloam and PT Megapratama Karya Bersama, which is a company that Siloam has a 99.99% direct interest in and which LPKR has a 0.01% indirect interest in
29th Jul
1H2022 results announcement; declared 2Q2022 DPU of 0.66 Singapore cents
Launched cash tender offer for S$60.0 million subordinated perpetual securities
Successfully received acceptance of approximately 45% for tender offer for outstanding perpetual notes before the expiry of cash tender offer
21st Sep
Announced the proposed acquisition of Loyal Residence Ayase and Medical Rehabilitation Home Bon Sejour Komaki for JPY2.6 billion
27th Sep
Completed the acquisition of Medical Rehabilitation Home Bon Séjour Komaki from Healthcare & Medical Investment Corporation
Completed the divestment of SHS for S$40.3 million
29th Sep
Completed the acquisition of Loyal Residence Ayase from Godo Kaisha Trinity Hawaii, a subsidiary of Healthcare Management Partner
Secured a JPY1.66 billion social loan from Shinsei Trust Bank, Limited
9M2022 business update announcement; declared 3Q2022 DPU of 0.66 Singapore cents
25th Nov
Obtained a term loan facility of S$225.0 million and a revolving credit facility of S$75.0 million from Oversea-Chinese Banking Corporation Limited and CIMB Bank Berhad, Singapore Branch
Executed option for extension of master lease for Imperial Aryaduta Hotel & Country Club for a further one year
