First REIT

(29-07-2011, 11:55 AM)Gregg Wrote:

(29-07-2011, 10:43 AM)Drizzt Wrote: Gregg if you can, ask him that by paying units they are actually enlarging or diluting the dividends, so essentially it balance off / or the management have already taken their share from the investors already isnt it.

Arranged 330pm, waiting for their reply.
Any other question to ask?

pls hekp to ask their plans and strategy to repay back
the bank loans. thanks.

do they have alot of loans? i think they would refinance. the question is whether it is fixed or float, higher or lower haha.

(29-07-2011, 12:54 PM)Drizzt Wrote: do they have alot of loans? i think they would refinance. the question is whether it is fixed or float, higher or lower haha.

call will be at 5pm.. .any more questions.. hehe..

If you don't mind, perhaps you could ask -

1) What is FR target gearing levels ?
2) What is the estimated capex required for the 3 lippo hospitals to be injected ?
3) How much capex will be required to extend the Singapore properties lease title which expires in 2 decades time ?
4) Why doesn't FR get a credit rating (from S&P, Moody, Fitch etc) in order to lower its interest expense ?
5) Why doesn't FR borrow from Indonesian banks to finance its Indonesian acquisitions ?

Thanks

(29-07-2011, 10:43 AM)Drizzt Wrote: Gregg if you can, ask him that by paying units they are actually enlarging or diluting the dividends, so essentially it balance off / or the management have already taken their share from the investors already isnt it.

Why don't they carry out shares buy back? Like this they can reward management with these shares and there is also no dilution to anyone.

(29-07-2011, 02:33 PM)kichialo Wrote:

(29-07-2011, 10:43 AM)Drizzt Wrote: Gregg if you can, ask him that by paying units they are actually enlarging or diluting the dividends, so essentially it balance off / or the management have already taken their share from the investors already isnt it.

Why don't they carry out shares buy back? Like this they can reward management with these shares and there is also no dilution to anyone.

In that case, might as well pay them in cash directly !

(29-07-2011, 02:49 PM)Nick Wrote:

(29-07-2011, 02:33 PM)kichialo Wrote:

(29-07-2011, 10:43 AM)Drizzt Wrote: Gregg if you can, ask him that by paying units they are actually enlarging or diluting the dividends, so essentially it balance off / or the management have already taken their share from the investors already isnt it.

Why don't they carry out shares buy back? Like this they can reward management with these shares and there is also no dilution to anyone.

In that case, might as well pay them in cash directly !

Another important question is there any right issues in the coming months...

Please see the reply:

1) Total return for the period after income tax: $8.7Mil and First REIT is going to distribute $9.9mil as Dividend, how to cover the shortfall of $1.2mil?
a. This amount of money coming from the Management Fee that was paid in Units
2) What is FR target gearing levels ?
a. They won't go higher than 30%
3) Any right issues in the coming months
a. Not at the moment until next year.
4) Any pre-payment of the loan as we did not see this in both Q1 & Q2 2011? they have alot of loans? Loan is fix interest or floating interest?
a. Floating rate and no plan for loan prepayment as FR is going to distribute 90~100% income.
5) Why doesn't FR borrow from Indonesian banks to finance its Indonesian acquisitions ?
a. To avoid currency exchange risk. All revenue from indonesia property are paid in SGD and indonesia bank interest is higher
6) What is the estimated capex required for the 3 lippo hospitals to be injected ?
a. Those are still under initial discussion, the capex will be coming from borrowing rather than right issues
7) How much capex will be required to extend the Singapore properties lease title which expires in 2 decades time ?
a. No number at the moment. They mentioned that Lentor Extension that funded by FR will be giving higher rental income to FR, still no actual $$ to be provided.
8) Why doesn't FR get a credit rating (from S&P, Moody, Fitch etc) in order to lower its interest expense ?
a. FR control the gearing a very low level so they did not approach to get the credit rating

Thank you for the info Gregg !

(29-07-2011, 06:14 PM)Nick Wrote: Thank you for the info Gregg !

Miss out another point, FR is actually having negotiation with bank for refinancing (floating rate),to be completed either end of this year or mid of next year,I believe this wOuld bring down the finance expenses in the coming quarters.

Sarang hospital is newest expansion in Korea, no other hospital acquisition (Korea)on-going at the moment.