Bowsprit Capital Corporation, the manager of First Real Estate Investment Trust (First REIT), Singapore’s first healthcare real estate investment trust, announced today that First REIT’s distribution in projection year 2011 is expected to rise from 8.57%1 to 9.14% following the acquisition of two new healthcare properties in Indonesia – The Mochtar Riady Comprehensive Cancer Centre and Siloam Hospitals Lippo Cikarang.

This is based on a forecast annualised distribution per Unit (DPU) of 6.40 cents for the full financial year ending 31 December 2011, in relation to its enlarged portfolio and financing through a combination of the underwritten renounceable rights issue of 345,664,382 new units at an issue price of $0.50 per rights unit and bank loan.

Apart from the upside in yield, the manager also expects to see an increase in annual gross rental income of 80%, from $30.3 million in forecast year 2010 to $54.5 million in projection year 2011 as a result of its enlarged portfolio. On the same basis, distributable income is also expected to increase by 89% from $21.3 million to $40.3 million.

Upon completion of the Acquisitions, First REIT’s aggregate leverage will also be lowered from 18.60% to 17.25% for the projection year 2011. Accordingly, First REIT’s statement of financial position will be strengthened, leaving sufficient capability for debt financing should the need for such financing arises in the future.