First REIT extends a further two months of rental relief worth S$18.9 million to all tenants in Indonesia

Editorial Team
Editorial Team

First REIT (SGX:AW9U) will be extending a further two months of rental relief to all tenants in Indonesia, its manager announced on 22 October after trading had closed for the day.

Indonesia reported its highest number of monthly COVID-19 cases in September as cases rose 69% from the previous month, with virus now spreading to all 34 provinces in the country and new hotspots emerging in a number of provinces. A partial lockdown (locally known as large-scale social restrictions) was imposed in Jakarta from 14 September to 11 October. This was then extended by a transitional large-scale social restrictions from 12 to 25 October.

Taking into consideration the continuing significant impact of the COVID-19 pandemic and the prolonged challenging operating environment in Indonesia, First REIT will grant its tenants in Indonesia a further two month rental relief amounting to S$18.9 million for the month of September and October.

With this additional relief, First REIT’s available distribution income for the six months ending 31 December 2020 (2H 2020) is expected to decline by 40% to 50% from the S$34.3 million recorded the previous year (2H 2019).

First REIT’s distribution per unit for 2H 2020 is expected to decline by 40% to 50% from 4.30 cents recorded in 2H 2019.

The Manager wishes to advise Unitholders and potential investors to exercise caution when dealing in the Units.