Financial Statements And Related Announcement :: Second Quarter And/ Or Half Yearly Results

First Real Estate Investment Trust ("First REIT") is a real estate investment trust constituted by the Trust Deed entered into on 19 October 2006 between Bowsprit Capital Corporation Limited as the Manager and HSBC Institutional Trust Services (Singapore) Limited as the Trustee. First REIT was listed on the Singapore Exchange Securities Trading Limited on 11 December 2006.

First REIT is Singapore's first healthcare real estate investment trust that aims to invest in a diversified portfolio of income-producing real estate and / or real estate-related assets in Asia that are primarily used for healthcare and / or healthcare-related purposes.

Managed by Bowsprit Capital Corporation Limited, First REIT's portfolio consists of eighteen properties located in Indonesia, Singapore and South Korea, namely 1) Siloam Hospitals Lippo Village, 2) Siloam Hospitals Kebon Jeruk, 3) Siloam Hospitals Surabaya, 4) Imperial Aryaduta Hotel & Country Club, 5) Mochtar Riady Comprehensive Cancer Centre, 6) Siloam Hospitals Lippo Cikarang, 7) Siloam Hospitals Manado & Hotel Aryaduta Manado, 8) Siloam Hospitals Makassar, 9) Siloam Hospitals Bali, 10) Siloam Hospitals TB Simatupang, 11) Siloam Hospitals Purwakarta, 12) Siloam Sriwijaya, 13) Siloam Hospitals Kupang & Lippo Plaza Kupang, 14) Siloam Hospitals Labuan Bajo,15) Pacific Healthcare Nursing Home @ Bukit Merah, 16) Pacific Healthcare Nursing Home II @ Bukit Panjang, 17) The Lentor Residence and

1. Sarang Hospital.

   Its hospital assets in Indonesia are operated by PT Siloam International Hospitals Tbk, a subsidiary of PT Lippo Karawaci Tbk, a strong brand name in the Indonesian healthcare industry supported by a team of international healthcare professionals whereas The Imperial Aryaduta Hotel & Country Club and Hotel Aryaduta Manado are operated by The Aryaduta Hotel and Resort Group. The Lippo Plaza Kupang is managed by PT Lippo Malls Indonesia. In Singapore, the nursing homes at Bukit Merah and Bukit Panjang are operated by Pacific Healthcare Nursing Home Pte. Ltd. and Pacific Eldercare and Nursing Pte. Ltd., respectively. The Lentor Residence is operated by The Lentor Residence Pte. Ltd. In South Korea, the Sarang Hospital is operated by a private doctor.

   Through First REIT, investors can participate in an asset class that has a focus towards Asia's growing healthcare sector, which is boosted by an increase in life expectancy in Indonesia and the rest of Southeast Asia.

   Summary of First REIT's Results

   Group
   Quarter			Year-to-date
   2Q 2017	2Q 2016	Change	30 Jun 2017	30 Jun 2016	Change
   S$'000	S$'000	%	S$'000	S$'000	%
   27,477	26,604	3.3%	54,628	53,100	2.9%
   27,154	26,321	3.2%	54,021	52,528	2.8%
   16,642	16,240	2.5%	33,235	32,437	2.5%
   2.14	2.11	1.4%	4.28	4.221	1.4%
   8.63	8.471	1.9%	8.63	8.471	1.9%

   Gross Revenue Net Property Income

   Distributable Amount

   Distribution per unit (cts)

   Annualised Distribution per unit (cts)

   Note:

2. Actual distribution paid for FY 2016.

Distribution Details

Distribution	1 April 2017 to 30 June 2017
Distribution type	Taxable income Tax-exempt income ) Capital distribution
Distribution rate	Total: 2.14 cents per unit Taxable income distribution - 0.08 cents per unit Tax-exempt income distribution - 1.17 cents per unit ) Capital distribution - 0.89 cents per unit
Book closure date	25 July 2017 at 5.00 pm
Ex-dividend date	21 July 2017 at 9.00 am
Payment date	28 August 2017

Distribution Reinvestment Plan ("DRP")

The DRP will not be applicable for this quarter. All Unitholders will be receiving 2Q 2017 DPU of Singapore 2.14 cents in cash, payable on 28 August 2017. The Manager may consider applying the DRP at a later date and Unitholders will be notified accordingly.

1(a)(i) Statement of Total Return

Group
Quarter			Year-to-date
Note	2Q 2017	2Q 2016	Change	30 Jun 2017	30 Jun 2016	Change
1	S$'000	S$'000	%	S$'000	S$'000	%
	27,477	26,604	3.3%	54,628	53,100	2.9%
	(323)	(283)	14.1%	(607)	(572)	6.1%
2	27,154	26,321	3.2%	54,021	52,528	2.8%
	314	331	(5.1%)	624	452	38.1%
3	(2,685)	(2,630)	2.1%	(5,343)	(5,245)	1.9%
	(100)	(99)	1.0%	(198)	(197)	0.5%
	(4,259)	(4,677)	(8.9%)	(8,554)	(9,298)	(8.0%)
4	162	(336)	NM	327	(1,270)	NM
5	20,586	18,910	8.9%	40,877	36,970	10.6%
	-	-	-	-	512	NM
	(672)	(569)	18.1%	(1,081)	(3,094)	(65.1%)
6	19,914	18,341	8.6%	39,796	34,388	15.7%
	(4,525)	(4,260)	6.2%	(8,799)	(8,794)	0.1%
	15,389	14,081	9.3%	30,997	25,594	21.1%
	(165)	(5)	NM	(578)	(552)	4.7%
	15,224	14,076	8.2%	30,419	25,042	21.5%
	14,539	14,081	3.3%	29,307	25,594	14.5%
	850	-	NM	1,690	-	NM
	15,389	14,081	9.3%	30,997	25,594	21.1%

Gross revenue

Property operating expenses Net property income Interest income

Manager's management fees Trustee fees

Finance costs

Other income/(other expenses) Net income before the undernoted

Gains on divestment of investment property

Net change in fair value of derivative financial instruments Total return for the period before income tax

Income tax expense

Total return for the period after income tax Other comprehensive return: Exchange differences on translating foreign operations, net of tax Total comprehensive return for the period Total return for the period after income tax attributable: Unitholders

Perpetual securities holders

Note:

NM - Not meaningful

The results for 2Q 2017 includes the full quarter contribution from Siloam Hospitals Labuan Bajo ("SHLB") which was acquired in December 2016.

1. Property operating expenses for 2Q 2017 increased by 14.1% to S$323,000 compared to 2Q 2016 mainly due to higher property expenses incurred with the acquisition of SHLB.

2. Interest income for 2Q 2017 decreased to S$314,000 compared to 2Q 2016 mainly due to the lower interest income from bank deposits.

3. Finance cost for 2Q 2017 decreased to S$4.3 million compared to 2Q 2016 mainly due to the lower loan amounts as a result of the issuance of perpetual securities to pare down the loan amounts in 3Q 2016.

4. Other income for 2Q 2017 as compared to other expenses for 2Q 2016 mainly due to the higher unrealised exchange gain from the USD loan.

5. Net change in fair value of derivative financial instruments for 2Q 2017 relates to the revaluation of interest rate swap contracts.

6. Income tax expenses for 2Q 2017 increased to S$4.5 million compared to 2Q 2016 mainly due to higher revenue.

   1(a)(ii) Statement of Distribution

   Group
   Quarter			Year-to-date
   Note	2Q 2017	2Q 2016	Change	30 Jun 2017	30 Jun 2016	Change
   1	S$'000	S$'000	%	S$'000	S$'000	%
   	15,389	14,081	9.3%	30,997	25,594	21.1%
   	1,882	1,842	2.2%	4,328	3,675	17.8%
   	(283)	-	NM	(971)	(893)	8.7%
   	672	569	18.1%	1,081	3,094	(65.1%)
   	-	-	-	-	(122)	NM
   	-	-	-	-	787	NM
   	-	27	NM	-	581	NM
   	(850)	-	NM	(1,690)	-	NM
   	(168)	(279)	(39.8%)	(510)	(279)	82.8%
   	16,642	16,240	2.5%	33,235	32,437	2.5%
   	9,727	9,428	3.2%	19,347	18,653	3.7%
   	6,915	6,812	1.5%	13,888	13,784	0.8%
   	16,642	16,240	2.5%	33,235	32,437	2.5%

   Total return for the period after income tax

   Adjustments for tax purposes:

   • Manager's management fees payable in units

   • Foreign exchange gains

   • Net change in fair value of derivative financial instruments

   • Gains on divestment of investment property, net of tax

   • Costs related to Siloam Hospitals Surabaya transaction

   • Costs related to MTN exercise

   • Amount reserved for distribution to perpetual securities holders

   • Others

     Total available for distribution to Unitholders

     Unitholders' distribution:

   • as distribution from operations

   • as distribution of Unitholders' capital contribution

   Distribution amount to Unitholders

   Note:

   NM - Not meaningful

7. In 2016, the Trust issued S$60.0 million of subordinated perpetual securities. The perpetual securities confer a right to receive distribution payments at the rate of 5.68% per annum, with the first distribution rate reset falling on 8 July 2021 and subsequent resets occurring every five years thereafter. Distributions under the perpetual securities will be payable semi-annually in arrears on 8 January and 8 July in each year on a discretionary basis. Any distribution unpaid will be non-cumulative as stated in the terms and conditions of the perpetual securities.