Results Presentation 4Q FY2008 Capitalizing on the defensive healthcare sector 22 January 2009
Disclaimer Investors are advised to read this presentation in conjunction with the 2008 Fourth Quarter Unaudited Financial Statements & Distribution Announcement made by First REIT in SGXNET. The value of units in First REIT ( Units ) and the income from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties based on the Manager s current view of future events. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of risks, uncertainties and assumptions representative examples include, without limitation, general economic and industry conditions, interest rate trends, cost of capital, capital availability, shifts in expected levels of property rental income, change in operating expenses, property expenses and government and public policy changes and continued availability of financing in the amounts and the terms necessary to support future business. The past performance of First REIT is not necessarily indicative of the future performance of First REIT. 2
3 Agenda 1) Overview 2) Portfolio Highlights 3) Financial Highlights 4) Growth Strategy 5) DPU & Price Comparison 6) Distribution Details
Rental growth indexed to inflation Established operator-tenants Overview Distributions Stable cash distributions Long-term Rental income denominated in SGD Lease Healthcare and healthcare-related purposes Income-producing real estate in Asia 4
5 Agenda 1) Overview 2) Portfolio Highlights 3) Financial Highlights 4) Growth Strategy 5) DPU & Price Comparison 6) Distribution Details
Description Portfolio Highlights Country Valuation* (S$M) Siloam Hospitals Lippo Karawaci Indonesia 138.5 43% Siloam Hospitals West Jakarta Indonesia 74.1 23% Siloam Hospitals Surabaya Indonesia 26.2 8% Imperial Aryaduta Hotel & Country Club Indonesia 32.2 9% Subtotal 271.0 83% Pacific Healthcare Nursing Home @ Bukit Merah Singapore 12.0 4% Pacific Healthcare Nursing Home @ Senja Singapore 11.4 4% The Lentor Residence Singapore 13.0 4% Adam Road Hospital Singapore 17.5 5% Subtotal 53.9 17% % Grand Total 324.9 100% *: based on valuation dated 26 December 2008 6
Rental Income Breakdown By Geography 4Q 2007 vs 4Q 2008 FY 2007 vs FY 2008 100% 13.6% 13.9% 100% 9.0% 13.4% 80% 80% 60% 60% 40% 86.4% 86.1% 40% 91.0% 86.6% 20% 20% 0% 4Q 2007 4Q 2008 Indonesia Singapore 0% FY 2007 FY 2008 Indonesia Singapore Increased contribution from Singapore properties 7
8 Agenda 1) Overview 2) Portfolio Highlights 3) Financial Highlights 4) Growth Strategy 5) DPU & Price Comparison 6) Distribution Details
Financial Highlights Gross Revenue 4Q 2008 gross revenue of S$7.6 million: 4.5% higher y-o-y FY 2008 gross revenue of S$30.2 million: 12.2% higher y-o-y NPI 4Q 2008 NPI of S$7.5 million: 4.1% higher y-o-y FY 2008 NPI of S$30.0 million: 12.3% higher y-o-y DPU 4Q 2008 DPU of 1.94 cents: 10.2% higher y-o-y FY 2008 DPU of 7.62 cents: 13.2% higher y-o-y Distribution Yield 17.5% (based on closing price of S$0.435 on 20 January 2009) 9
Financial Performance In S$ 000 4Q 2008 4Q 2007 Change FY 2008 FY 2007 Change Gross Revenue 7,580 7,254 4.5% 30,178 26,900 12.2% Net Property Income 7,509 7,214 4.1% 29,964 26,679 12.3% Distributable Amount 5,318 4,793 11.0% 20,831 18,327 13.7% Distribution per Unit 1.94 1.76 10.2% 7.62 6.73 13.2% Distribution Yield S$0.435 per unit ( 2009 (Closing price as at 20 Jan 17.52% 15.47% 13.2% 17.52% 15.47% 13.2% 10
Gross Revenue & Net Property Income 12.2% 12.3% 30,000 25,000 26,900 30,178 30,000 25,000 29,964 26,679 20,000 20,000 15,000 4.5% 15,000 4.1% 10,000 7,254 7,580 10,000 7,214 7,509 5,000 5,000 0 4Q 2007 4Q 2008 FY 2007 FY 2008 0 4Q 2007 4Q 2008 FY 2007 FY 2008 Key points: Gross Revenue Net Property Income fromreceivedrentalstheand 2006 inacquiredpropertiesindonesianfourgroup sthefromrentalincreased the four Singaporean properties newly acquired in 2007 Long term leases denominated in Singapore dollars Yearly rental increases 11
Liabilities Assets Balance Sheet Highlights As at 31 Dec 2008 (S$ 000) As at 31 Dec 2007 (S$ 000) Non-current 324,900 325,600 Current 14,647 15,272 Total 339,547 340,872 Non-current 23,092 77,664 Current 61,357 11,866 Total 84,449 89,530 Unitholders Funds 255,098 251,342 NAV/unit 93.21 92.38 12
Borrowings As at 31 Dec 2008 As at 31 Dec 2007 Total Debt * 50.8 million 50.8 million Interest Cover 14.2 times 16.1 times Debt-to-Property 15.6% 15.6% *: before transaction costs Key points: Borrowings are secured by property assets (except The Lentor Residence). Current credit facilities are due for renewal in 2Q FY2009. Manager will structure greater flexibility in terms of maturity profile for new credit facility. Conservative debt gearing at 15.6% vs regulatory limit of 35%. 13
14 Agenda 1) Overview 2) Portfolio Highlights 3) Financial Highlights 4) Growth Strategy 5) DPU & Price Comparison 6) Distribution Details
Growth Strategy Growth Drivers Pro-active Asset Enhancement/ Management Quality Acquisitions Partnership with tenant-operator to identify value-adding initiatives and enhance competitive positioning. Siloam Hospital Lippo Karawaci is expanding its outpatient department and upgrading its clinical capabilities to meet growing demands. Yield accretive acquisitions of healthcare-related properties with reputable operators in Asia. Adam Road Hospital slated for comprehensive asset enhancement works to achieve better positioning of property - expected to commence in 2009. 15
16 Agenda 1) Overview 2) Portfolio Highlights 3) Financial Highlights 4) Growth Strategy 5) DPU & Price Comparison 6) Distribution Details
Strong and Consistent DPU Growth 4Q 2007 vs 4Q 2008 10.2% 2.0 1.6 1.52 1.60 1.72 1.76 1.59 1.65 1.60 1.61 1.60 1.85 1.65 1.91 1.92 1.94 1.72 1.76 1.2 0.8 0.4 0.0 1 Jan - 31 Mar 07 1 Apr - 30 Jun 07 1 Jul - 30 Sep 07 1 Oct - 31 Dec 07 1 Jan - 31 Mar 08 1 Apr - 30 Jun 08 1 Jul - 30 Sep 08 1 Oct - 31 Dec 08 Forecast (2007) Actual Prior Year 17
Yield Comparison Annualised Yield 55% 53.0% 45% 35% 34.2% 25% 21.6% 21.5% 19.0% 18.8% 18.6% 18.4% 17.5% 15.3% 15.1% 15.0% 14.2% 13.4% 13.0% 12.8% 12.3% 15% 5% 10.1% 8.8% Based on the closing price of $0.435 on 20 January 2009 18
Yield Comparison 17.5% 15% 10% 5% 2.5% 2.4% 5.4% 0% 0.2% Bank Saving Deposits (1) 0.7% Bank Fixed Deposits (12 months) (2) CPF (ordinary account) (3) 15-Year Government Bond (4) STI Index Dividend Yield (5) First REIT's Yield (6) Note: (1) Interest rate for bank savings deposits as at 31 December 2008. Source: MAS website (2) Interest rate for bank fixed deposits (12 months) as at 31 December 2008. Source: MAS website (3) Interest paid on Central Provident Fund ordinary account for 1 January 2009 to 31 March 2009. Source: CPF website (4) Singapore Government Securities bond yield as at 19 January 2009. Source: MAS website (5) Based on Bloomberg data as at 19 January 2009 (6) Based on the closing price of $0.435 on 20 January 2009 and annualised DPU of 7.62 Singapore cents 19
Agenda 1) Overview 2) Portfolio Highlights 3) Financial Highlights 4) Growth Strategy 5) DPU & Price Comparison 6) Distribution Details 20
Distribution Details Distribution for 1 Oct 2008 to 31 Dec 2008 Distribution Per Unit 1.94 - Taxable 0.18 - Tax-Exempt 1.57 - Capital 0.19 Book Closure Date 3 Feb 2009 Distribution Payment Date 27 Feb 2009 21
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