First REIT FY2025: Strategic Review Ongoing (Siloam LOI for Indonesia Portfolio), DPU 2.17¢ -8.1%, IAHCC Divested

First REIT FY2025 Annual Report (year ended 31 December 2025) reflects a healthcare REIT under active strategic transformation — DPU declined 8.1% to 2.17 S¢ on FX headwinds and the IAHCC divestment, while the underlying portfolio maintained 100% committed occupancy with a robust 10-year WALE across 31 properties.

On 13 January 2025, Siloam International Hospitals submitted a preliminary non-binding LOI to acquire First REIT's Indonesian hospital portfolio. The Board appointed Citi (Citigroup Global Markets Singapore) and ran a competitive outreach to 60+ parties. The Strategic Review remains ONGOING as at December 2025. The REIT is simultaneously maintaining full operations and managing capital while the Board considers all options — joint ventures, partnerships, acquisitions, divestments.

• ▸Indonesia (14 properties, 74.5% of AUM = S$762M): 11 hospitals, 2 integrated hospital+malls, 1 integrated hospital+hotel. All 100% occupied. 10 hospitals received +4.5% built-in rent increment in local currency. 3 hospitals (Kebon Jeruk, Purwakarta, Sriwijaya) earned performance-based rent at 8% of gross operating revenue. Siloam Hospitals Lippo Cikarang lease extended to 31 Dec 2026 (short-term, preserves Strategic Review flexibility). PT Metropolis Propertindo Utama (MPU) rental arrears outstanding at ~S$6.9M — security deposit of ~S$3.9M available; MPU settled ~S$1.5M post-year end.
• ▸Japan (14 nursing homes, 22.7% of AUM = S$232M): All freehold. All 100% occupied. Rental income stable in JPY terms. Key watch: Bon Séjour Komaki (Benesse Style Care, lease expiry 21 May 2027 — shortest in Japan portfolio).
• ▸Singapore (3 nursing homes, 2.8% of AUM = S$28.6M): 2.0% SGD rental growth. Singapore leases expire Apr/Jun 2027 with limited residual land tenures (6–12 years).

DIVESTED: Imperial Aryaduta Hotel & Country Club (IAHCC) — completed December 2025. Non-core legacy hospitality asset previously identified for disposal. Contributed ~11 months of income to FY2025.

• ▸Rental & Other Income: S$100.5M (FY2024: S$102.2M; -1.6% — FX drag + IAHCC divestment, partly offset by local currency rent growth).
• ▸NPI: S$97.3M (FY2024: S$98.5M; -1.2%).
• ▸Distributable Amount: S$45.8M (FY2024: S$49.3M; -7.1%).
• ▸DPU: 2.17 S¢ (FY2024: 2.36 S¢; -8.1%).
• ▸Distribution Yield: 7.9% (FY2024: 9.3%; based on year-end unit price of 27.5 S¢).
• ▸AUM: S$1,022.6M (FY2024: S$1,117.7M incl. IAHCC; -6.2% like-for-like on FX).
• ▸NAV/unit: 24.97 S¢ (FY2024: 28.60 S¢).
• ▸Aggregate Leverage: 42.1% (FY2024: 39.6%; below 50% MAS limit).
• ▸Interest Coverage: 3.7x. Cost of Debt: 4.5% (FY2024: 5.0%; -50bps).
• ▸S$300M term loan + RCF extended to May 2027. S$33.3M perpetual securities redeemed Jan 2026.

Tan Kok Mian Victor: S$525,725 (FY2025); FY2024: S$525,000 (+0.1% YoY). Mix: 76% fixed / 24% performance bonus. No LTI scheme, no stock options. Total Director fees S$545,000 (FY2025).

First REIT's FY2025 headline numbers are weaker — DPU down 8.1%, NAV down 13% — but the underlying fundamentals remain sound: 100% occupancy, 10-year WALE, and local currency rent growth across all three markets. The real story is the Strategic Review. With Siloam's LOI for the Indonesian portfolio and outreach to 60+ parties, First REIT is at a strategic inflection point that could reshape its profile entirely. The FX headwinds (weak JPY and IDR vs SGD) are structural and will persist; resolution of the Strategic Review is the single most important catalyst for unitholders heading into 2026.