First REIT secures $50m revolving credit facility

It will fund the REIT's future acquisitions.

First REIT (FREIT) has secured a new S$50m revolving credit facility and the extension of due dates of two existing term loan facilities of $122m.

According to OCBC Investment Research, the REIT's outstanding debt would now be reduced from S$141.6m to a "manageable level" of around $20m.

The revolving credit facility fund future acquisitions and working capital requirements. This follows FREIT’s proposed acquisition of a property on Buton Island, Indonesia, for $28.5m.

OCBC analyst Joseph Ng said, "We do not rule out the possibility of further acquisitions in 2H17, given that FREIT currently has a healthy gearing ratio of 31.0%, as at 30 Jun 2017."