Cash Dividend/ Distribution :: Mandatory

(Constituted in the Republic of Singapore pursuant to A trust deed dated 19 October 2006 (as amended))

ANNOUNCEMENT

1. NOTICE OF BOOKS CLOSURE AND DISTRIBUTION PAYMENT DATE
2. APPLICATION OF DISTRIBUTION REINVESTMENT PLAN TO THE DISTRIBUTION FOR THE DISTRIBUTION PERIOD FROM 1 OCTOBER 2016 TO 31 DECEMBER 2016

NOTICE IS HEREBY GIVEN THAT the Transfer Books and Register of Unitholders of First Real Estate Investment Trust ("First REIT") will be closed at 5.00 p.m. on 26 January 2017 (the "Books Closure Date") to determine Unitholders' entitlements to First REIT's distribution. First REIT has announced a distribution of 2.13 cents per unit in First REIT ("Unit") for the period from 1 October 2016 to 31 December 2016, comprising a taxable income component of 0.07 cents per Unit, a tax-exempt income component of 1.16 cents per Unit and a capital component of 0.90 cents per Unit (the "Distribution").

Unitholders of First REIT ("Unitholders") whose securities accounts with The Central Depository (Pte) Limited ("CDP") are credited with Units as at the Books Closure Date will be entitled to the Distribution to be paid on 28 February 2017.

DECLARATION FOR SINGAPORE TAX PURPOSES

1. The tax-exempt component of the Distribution is exempt from tax in the hands of all Unitholders. No tax will be deducted at source from this component.

2. The capital component of the Distribution is treated as a return of capital for Singapore income tax purposes. No tax will be deducted at source from this component.

3. Tax will be deducted at source from the taxable income component in certain circumstances. The following paragraphs describe the circumstances in which tax will or will not be deducted from the taxable income component of the Distribution.

4. The following categories of Unitholders will receive a gross distribution (i.e., no tax will be deducted from it):

5. Unitholders who are individuals and who hold the units either in their sole names or jointly with other individuals;

6. Unitholders which are companies incorporated and tax resident in Singapore;

7. Unitholders which are Singapore branches of foreign companies that have obtained specific approval from the Inland Revenue Authority of Singapore to receive the Distribution from the trustee of First REIT without deduction of tax; or

8. Unitholders which are non-corporate entities (excluding partnerships) constituted or registered in Singapore, such as:

9. institutions, authorities, persons or funds specified in the First Schedule to the Income Tax Act (Chapter 134);

10. co-operative societies registered under the Co-operative Societies Act (Chapter 62);

11. trade unions registered under the Trade Unions Act (Chapter 333);

12. charities registered under the Charities Act (Chapter 37) or established by an Act of Parliament; and

13. town councils.

14. To receive a gross distribution, Unitholders in categories (b) to (d) under Paragraph 4 above must complete the applicable Section A, B or C of the "Declaration for Singapore Tax Purposes Form" ("Form A").

    These categories of Unitholders, unless they are exempt from tax because of their own circumstances, will have to pay income tax subsequently at their own applicable tax rates.

15. Unitholders in category (a) under Paragraph 4 above are not required to submit any form. The gross distribution received by these Unitholders (irrespective of their tax residence status) is exempt from tax if it is not derived through a partnership in Singapore or from the carrying on of a trade, business or profession.

16. Tax at the reduced rate of 10% will be deducted from the distribution made to foreign non- individual Unitholders. A foreign non-individual Unitholder is one (other than an individual) who is not a resident of Singapore for income tax purposes and:

17. who does not have a permanent establishment in Singapore; or

18. who carries on any operation in Singapore through a permanent establishment in Singapore, where the funds used to acquire the units in First REIT are not obtained from that operation.

19. To receive the distribution net of tax deducted at 10%, foreign non-individual Unitholders are required to complete Section D of Form A.

20. Unitholders who do not fall within the classes of Unitholders listed in Paragraph 4 and Paragraph 7 above can choose not to return Form A as tax will be deducted from the distributions made to them at the prevailing corporate tax rate, currently at 17%.

21. For beneficial owners of units in First REIT who hold their units through depository agents to receive:

22. gross distribution if they are persons described in categories (a) to (d) under Paragraph 4 above; or

23. distribution net of tax deducted at 10% if they are foreign non-individuals described in Paragraph 7 above,

    the depository agents must complete the "Declaration by Depository Agents for Singapore Tax Purposes Form" ("Form B") and its annexes.

24. Form A and Form B (and its annexes) will be sent to Unitholders and depository agents respectively, by First REIT's Unit Registrar, Boardroom Corporate & Advisory Services Pte. Ltd. on or around 6 February 2017.

25. Unitholders (Form A) and the depository agents (Form B and its annexes) will have to complete the forms legibly and send it to the Unit Registrar such that they are received by 5.00 p.m. on 15 February 2017. Failure to comply with any of these requirements will render Form A and Form B invalid and the Trustee and the Manager of First REIT will be obliged to deduct tax at the rate of 17% from the distribution. Unitholders may wish to seek tax advice for completing the Form A and/or Form B.

26. Unitholders who hold units under the Central Provident Fund Investment Scheme ("CPFIS") and the Supplementary Retirement Scheme ("SRS") do not have to return any form. They will receive gross distribution.

DISTRIBUTION REINVESTMENT PLAN

Bowsprit Capital Corporation Limited, as manager of First REIT (the "Manager"), wishes to announce that the distribution reinvestment plan (the "DRP") will apply to the Distribution. The statement containing the terms and conditions of the DRP (the "DRP Terms and Conditions") is attached in the Appendix.

The DRP provides Unitholders with the option to receive their Distribution, either in the form of Units or cash or a combination of both. A Unitholder will have the following options in respect of his Distribution:

• elect to receive a cash distribution on his existing Units held; or

• elect to receive an allotment of Units credited as fully paid in lieu of the cash amount of the distribution entitlement for the distribution period from 1 October 2016 to 31 December 2016 only; or

• elect to receive an allotment of Units credited as fully paid in lieu of part of the cash amount of the distribution entitlement and the remaining distribution entitlement in cash.

Participation in the DRP is voluntary and Unitholders may elect to participate in respect of all or part of their distribution entitlement for the distribution period from 1 October 2016 to 31 December 2016. Units to be issued under the DRP will be issued under the general unit issue mandate obtained from Unitholders at the annual general meeting of First REIT held on 19 April 2016.

1. Notice of Election

   The Notices of Election1 will be sent to Unitholders registered in the Depository Register2 as at the Books Closure Date on 6 February 2017.

   Unitholders who wish to participate in the DRP will have to complete the Notice of Election and send it to the unit registrar of First REIT, Boardroom Corporate & Advisory Services Pte. Ltd. (the "Unit Registrar") at 50 Raffles Place, #32-01 Singapore Land Tower, Singapore 048623 (Telephone number: [phone]), such that it is received by 5.00 p.m. on 15 February 2017.

   Unitholders who wish to receive their Distribution in cash need not take any action.

2. "Notice of Election" means the one or more notices of election (in such form as the Manager may approve) which the Manager will, at its discretion, send to each Unitholder and through which each Unitholder may indicate whether they wish to participate in the Distribution Reinvestment Plan.

3. "Depository Register" shall have the meaning ascribed to it in the Companies Act, Chapter 50 of Singapore.

   Unitholders who wish to participate in the DRP and do not receive the Notice of Election within three Market Days3 after the expected date of despatch on 6 February 2017 may obtain a copy from the Unit Registrar.

4. Overseas Unitholders

   Only Unitholders with Singapore registered addresses will be eligible to participate in the DRP. For practical reasons and to avoid any violation of the securities laws applicable in countries outside Singapore where Unitholders may have their registered addresses, the DRP will not be offered to Overseas Unitholders (as defined in the DRP Terms and Conditions). Overseas Unitholders who wish to be eligible to participate in the DRP should provide an address in Singapore for the service of notices and documents to the Manager c/o CDP 9 North Bouna Vista Drive, #01-19/20 The Metropolis, Singapore 138588, not later than three Market Days prior to the Books Closure Date. Unitholders should note that all correspondences and notices will be sent to their last registered addresses with CDP. Unitholders which are subject to the laws and regulations of jurisdictions outside Singapore shall, in participating in the DRP, be deemed to have complied with all applicable legal and regulatory requirements of the relevant jurisdictions.

   Where deduction of income tax is applicable and the Unitholders elect to receive the distributions in Units, the number of Units to be allotted under the DRP will be computed based on the distributions net of tax deducted.

5. Issue Price

The issue price of each new Unit for this DRP will be set at a 3% discount to the volume- weighted average traded price per Unit for all trades on Singapore Exchange Securities Trading Limited (the "SGX-ST") for each of the Market Days during the period of 10 Market Days prior to and ending on the Books Closure Date (the "Issue Price").

The Manager will announce further details on the application of the DRP to the Distribution, including the Issue Price of new Units, in due course.

IMPORTANT REMINDER

Unitholders and depository agents must complete and return the "Declaration for Singapore Tax Purposes Form A and Form B (and its annexes)" and Notice of Election, respectively to the Unit Registrar's office by 5.00 pm on 15 February 2017 in order to receive the distribution either at gross or at net (after deduction of tax at 10%) as described above.

DECLARATION IN INCOME TAX RETURN

The distribution is considered as income for the year 2016. Beneficial owners of the distribution, other than those who are exempt from tax on the distribution or who are entitled to the reduced tax rate of 10%, are required to declare the gross amount of the taxable income component of the distribution as taxable income in their Singapore income tax return for the year of assessment 2017.

1. "Market Day" means a day on which Singapore Exchange Securities Trading Limited (the "SGX-ST") is open for trading in securities.