Condensed Interim Financial Statements Unaudited Six-Month Period Ended 30 June 2021

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Summary of First REIT's Results

* DPU is lower for 1H 2021 mainly due to the issuance of 791,062,223 rights units on 24 February 2021. These new rights units are entitled to participate in the 1Q and 2Q 2021 distribution. If the new rights units issued on 24 February 2021 are excluded in the distribution computation, the adjusted distribution per unit is 2.56 cents for 1H 2021.

DPU included 1Q 2021 DPU of 0.65 cents which was paid on 28 June 2021. The 2Q 2021 DPU is 0.65 cents.

Statement of Comprehensive Income
NM - Not meaningful

  1. Rental and other income for 1H 2021 increased by 0.9% to $38.9 million compared to 1H 2020 was mainly due to annual rental escalation for Singapore properties.
  2. Property operating expenses for 1H 2021 increased by 23.5% to $1.3 million compared to 1H 2020 was mainly due to impairment on receivables for South Korea property.
  3. Manager’s management feesfor 1H 2021 decreased by 16.9% to $3.9 million compared to 1H 2020 was mainly due to lower total assets.
  4. Trustee fees for 1H 2021 decreased by 27.7% to $154,000 compared to 1H 2020 was mainly due to lower total assets.
  5. Finance costs for 1H 2021 decreased by 14.3% to $8.5 million compared to 1H 2020 was mainly due to partial repayment of bank loans upon their maturity in March 2021.
  6. Net fair value gains/(losses) of derivative financial instruments for 1H 2021 relates to the revaluation of interest rate swap contracts.
  7. Income tax expense for 1H 2021 decreased by 5.3% to to $6.1 million compared to 1H 2020 was mainly due to lower withholding taxes on the back of lower dividend income received from the foreign subsidiaries.
Statements of Financial Position

Commentary on the competitive conditions of the industry

Following a spike in COVID-19 cases that has overwhelmed Indonesia’s medical system, the government has downgraded its gross domestic product ("GDP") growth forecast to 3.7% to 4.5%, from 4.5% to 5.3% after reinstating stringent emergency public activity restrictions that cover most of the country. On a quarter-on-quarter basis, GDP is expected to hit 6.3% and 5.5% in the third and fourth quarters respectively. Bank Indonesia has kept its key interest rate at a record low of 3.5% since February and its focus for the rest of the year is on keeping rates low and liquidity flush to support the economy, and maintaining a stable exchange rate.1 The government’s health budget for 2021 has increased to Rp193.9 trillion (US$13.4 billion) as the number of cases continue to rise. The budgeted funds are set aside for diagnostics, testing and tracing, health equipment, COVID-19 hospital treatment and financial incentive for healthcare workers. It has also procured more than 53.9 million doses of vaccines and aims to increase the vaccine rollout to 2 million doses per day as soon as possible, and eventually to 3 million doses per day by October.2 First REIT’s Indonesia hospitals operated by Siloam have aided the government through the provision of swab tests, rapid tests and antibody test services, as well as providing healthcare professionals to assist with the nation’s vaccination programme. Amid the ongoing pandemic and in line with government regulations, First REIT’s assets continue to operate under strict precautionary measures that prioritise the health and safety of all its patients, staff, and visitors. With reference to Siloam’s recent results announcement for the first half ended 30 June 2021, Siloam has shown sustainable growth momentum. Revenue grew 51.7% y-o-y to Rp3.8 trillion in 1H 2021 while net profit recovered from a loss a year ago to Rp302 billion in 1H 2021. Patient volumes, both inpatient admissions and outpatient visits, have also shown steady upward trend, expanding for the last four consecutive quarters.

1.   13 July 2021, Business Times - Bank Indonesia looking at tightening policy from late next year
2.  5 July 2021, The Jakarta Post - Indonesia increases health spending, wants vaccinations day and night