Thanks to reduced costs at it Sarang Hospital.
First REIT (FREIT)’s FY15 net property income came in at $25.4m, reflecting a 7.9% YoY growth from FY14’s $23.5m.
According to a report by CIMB, the marginal NPI increase is thanks to lower expenses incurred for Sarang Hospital, partly offset by land title renewal costs for an Indonesian property.
The company’s FY15 gross revenue inched up 8% YoY to $100.7m as well, due to contributions from the acquisition of Siloam Sriwijaya in December 2014, as well as maiden contributions from Siloam Hospitals Kupang and its December 2015 acquisition of Lippo Plaza Kupang.
The report further noted that in FY16, FREIT can look forward to earnings growth bolstered by full-year contributions from Siloam Hospitals Kupang and Lippo Plaza Kupang, as well as medium-term perks from asset enhancements at the Siloam Hospitals Surabaya.
Moreover, under a joint arrangement and asset swap with Lippo Karawaci, the latter will complete by 2019 a mixed development comprising apartments, a new hospital, a private school, a hotel, and an ancillary mall. Over the course of the development, FREIT will continue to receive rental income.
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