First REIT

(09-06-2013, 10:52 PM)Dividend Warrior Wrote: Bowsprit Capital Corporation Limited, in its capacity as manager of First Real Estate Investment Trust (“First REIT”, and as manager of First REIT, the “Manager”), wishes to announce that HSBC Institutional Trust Services (Singapore) Limited, as trustee of First REIT, has on 3 June 2013 entered into an agreement for lease for each of:

(i) No. 6 Lengkok Bahru, Singapore 159051 (“Lengkok Bahru”), with its existing tenant Pacific Healthcare Nursing Home Pte. Ltd., for a term of 10 years, with the new lease expiring on 11 April 2027; and
(ii) No. 21 Senja Road, Singapore 677736 (“Senja Road”), with its existing tenant Pacific Eldercare and Nursing Pte. Ltd., for a term of 10 years, with the new lease expiring on 11 April 2027.

quite old news liao...the thing they nv mention is whether there's any increase or decrease in rent

Anyone else having as good time as me ?

its down to 1.175 today.

chance to accumulate soon.... hehehe....

(12-06-2013, 02:40 PM)BlueKelah Wrote: Anyone else having as good time as me ?

its down to 1.175 today.

chance to accumulate soon.... hehehe....

It is always a good time for me.

Looking to add more too.

(12-06-2013, 05:30 PM)Dividend Warrior Wrote:

(12-06-2013, 02:40 PM)BlueKelah Wrote: Anyone else having as good time as me ?

its down to 1.175 today.

chance to accumulate soon.... hehehe....

It is always a good time for me.

Looking to add more too.

it's still less than your portfolio average yield of 7% leh

Result is out.

http://infopub.sgx.com/FileOpen/2Q2013_P...eID=249374

(28-07-2013, 08:44 AM)Dividend Warrior Wrote: Result is out.

http://infopub.sgx.com/FileOpen/2Q2013_P...eID=249374

impressive dpu growth.....nxt quarter should be more as it will include the full contribution of the new properties acquired earlier this yr... for 2Q2013 the newly acquired properties onli contributed from mid may onwards nia....

Was wondering why First REit fall 8% when lippomall only fall 5%, since hospital assets are supposed to be more defensive than malls, and First reit has 2 newly acquired hospitals in May, so all things equal, DPU will increase further in next quarter. Then I found out:

1) It gearing is 34.7% when it is not rated, that means there are only 0.3% away from debt ceiling!
2) All it loans are floated, which means "it can revised at a short notice" (words from AR)
3) Although rent is pegged in sing dollars, I am not sure if Indonesia properties can be valued at sing dollars, I know Lippomall valuation is done in rupiah and then convert into sing dollars, due to the weak rupiah, the malls valuation actually went up in rupiah terms, but after conversion, fall in value. Don't first reits assets need to go through the same conversion?

I feel a rights issue/ placement is imminent. Will stay away although I like the assets.

I still remember reading Shanrui comments about lousy management take the low interest rate to gear up for aquisitions. First reit fit this description perfectly. Disappointed, the price really need to be low for this to be a bargain, since the extent of dilution is unknown. Analysts are still issuing a buy call for this counter today

comments welcomed

Yeah rights issue is very possible, maybe something like 90 cents?
I like their assets but not their recent acquisitions, I rather management take a more cautious stance given interest rates are spiking up.

(20-08-2013, 10:39 PM)Greenrookie Wrote: 2) All it loans are floated, which means "it can revised at a short notice" (words from AR)

Since the assets are in Indonesia, the discounting should be done with ref to the domestic risk-free rate. It should be noted that the IDR 10y bonds are yielding 7.8% currently (vs SGS 10s 2.6%).

(20-08-2013, 10:39 PM)Greenrookie Wrote: Was wondering why First REit fall 8% when lippomall only fall 5%, since hospital assets are supposed to be more defensive than malls, and First reit has 2 newly acquired hospitals in May, so all things equal, DPU will increase further in next quarter. Then I found out:

1) It gearing is 34.7% when it is not rated, that means there are only 0.3% away from debt ceiling!
2) All it loans are floated, which means "it can revised at a short notice" (words from AR)
3) Although rent is pegged in sing dollars, I am not sure if Indonesia properties can be valued at sing dollars, I know Lippomall valuation is done in rupiah and then convert into sing dollars, due to the weak rupiah, the malls valuation actually went up in rupiah terms, but after conversion, fall in value. Don't first reits assets need to go through the same conversion?

I feel a rights issue/ placement is imminent. Will stay away although I like the assets.

I still remember reading Shanrui comments about lousy management take the low interest rate to gear up for aquisitions. First reit fit this description perfectly. Disappointed, the price really need to be low for this to be a bargain, since the extent of dilution is unknown. Analysts are still issuing a buy call for this counter today

comments welcomed

yep, thats my question, if the IDR plunges 10%, doesnt that mean the asset value of the Indonesian properties plunge by 10%, which means they probably would have exceeded the 35% regulatory requirements. Correct me if im wrong, but the regulatory requirements is 35% debt / property value.

I also wanted to ask if the revenue is earned in IDR, SGD or USD. not sure whats the contract they have with Siloam Hospitals. Did they say that the revenue is earned in SGD????? if thats the case, then the valuation could also be in SGD too (the above point becomes in a way invalid).

Another thing is actually First REIT raised SGD100bn of SGD denominated bonds in Q2 to pay for the hospitals. So its not entirely floating loans. But if the revenue, assets and debt are in different currency, the currency mismatch can cause signifcant losses next quarter.