First REIT

[kazukirai]

Any chance of a special distribution being declared using a portion of the gains made from the sale of the Cancer Center to fund it haha ?

Hope they can meet the 1.6 SG cents forecast.

Met the forecast.

Nothing really surprising. All the gains and dips in figures mainly due to the adjustments of having a larger share base after the rights issue in the 4Q last year and contribution of subsequent acquisitions.

Going forward, the reduction in Net Gearing leaves them in good position for future acquisitions and asset enhancements.

Not an inducement to buy or sell. (Vested)

From the Press Release:

First REIT posts 88.5% jump in 1Q 2011 distributable income to S$9.9 million

- Maiden contributions from newly acquired Mochtar Riady Comprehensive Cancer Centre and Siloam Hospitals Lippo Cikarang
- DPU in 1Q 2011 at 1.58 Singapore cents per unit following the rights issue in Dec 2010
- Number of units in issue has more than doubled to about 625 million, resulting in increased liquidity
- Annualised DPU of 6.41 Singapore cents is in line with forecast and translates to a distribution yield of 8.66%
- Stronger balance sheet to support First REIT’s growth strategy

[Nick]

They have an ambitious $1 billion AUM target which implies another round of fund raising in a few years time. Judging by their statements, I am guessing they will be focusing mainly in their area of expertise - nursing homes in Singapore and hospitals in Indonesia.

[Nick]

First REIT price has been strengthening in the past few week. It has hit its all time high of 78 cents today ! Could this be due to the recent corporate changes in LMIR REIT which shows Lippo Group interest in growing its REITs more aggressively ?

(Vested)

[changwk]

the observation i have made on this stock is this. the stock price still holds steady even after it goes ex-dividend. typically other stocks will adjust the price automatically after ex-dividend.

[Nick]

the observation i have made on this stock is this. the stock price still holds steady even after it goes ex-dividend. typically other stocks will adjust the price automatically after ex-dividend.

REITs pay a similar set of distribution quarterly. The price won't be volatile in between reporting periods unless something good (acquisitions) or bad (loan payments, rental defaults etc) happen in the interim period. In the case for First REIT, it has paid very stable distributions since IPO.

Based on its current unit price of 78.5 cents, it is trading at a dividend yield of 8.0% (assuming FY DPU of 6.3 cents) and at its NAV price of 78.3 cents.

(Vested)

[Nick]

FIRST REIT ADDED TO THE LATEST MSCI SINGAPORE INDEX

http://info.sgx.com/webcoranncatth.nsf/V...20032824C/$file/SGX_Announcement_First_REIT_MSCI.pdf?openelement

[Nick]

First REIT opens its first and largest private comprehensive cancer centre, MRCCC in Indonesia

Officially opened by President of Republic of Indonesia, DR. H. Susilo Bambang Yudhoyono

http://info.sgx.com/webcoranncatth.nsf/V...700168D5D/$file/MRCCC_opening.pdf?openelement [Press Release]

First REIT closed at a new record price of $0.805 giving rise to an annualized yield of 7.8%. Gearing stands at 13.6% with over $33 million cash. There is ample room to acquire more hospitals in Indonesia in the coming years. A quick view at Lippo Karawaci 1Q 2011 Presentation Slide 14 (available in their corporate websites) shows two hospitals are currently under construction and has a target opening in 2011.

(Vested)

[Nick]

First REIT acquires first hospital in South Korea for US$13 million

- Located in Yeosu City – host of 2012 World Expo
- Sarang Hospital is known for its rehabilitative treatment and nursing healthcare services and enjoys high occupancy rate

http://info.sgx.com/webcoranncatth.nsf/V...70030A0CF/$file/First_REIT_Korea_PR.pdf?openelement [Press Release]

http://info.sgx.com/webcoranncatth.nsf/V...70030F516/$file/Acquisition_of_Sarang_Hospital.pdf?openelement [SGX Announcement]

http://info.sgx.com/webcoranncatth.nsf/V...70030F516/$file/Acquisition_of_Sarang_Hospital.pdf?openelement [PPT Slides]

DPU should increase slightly.

(Vested)

[Nick]

- LIPPO TO SELL 30 PCT STAKE OF HOSPITAL UNIT VIA IPO

Lippo Karawaci , the nation's biggest property developer by market value, plans to sell around a 30 percent stake of its hospital unit Siloam via an initial public offering (IPO) next year in order to raise fresh capital to build up 33 hospitals in four years, said James Riady, the chairman of Lippo Group. (Bisnis Indonesia)

http://www.reuters.com/article/2011/07/0...TV20110708 [Full Article]

(Vested)

[FFNow]

- LIPPO TO SELL 30 PCT STAKE OF HOSPITAL UNIT VIA IPO

Lippo Karawaci , the nation's biggest property developer by market value, plans to sell around a 30 percent stake of its hospital unit Siloam via an initial public offering (IPO) next year in order to raise fresh capital to build up 33 hospitals in four years, said James Riady, the chairman of Lippo Group. (Bisnis Indonesia)

http://www.reuters.com/article/2011/07/0...TV20110708 [Full Article]

(Vested)

Means more hospitals in the pipeline for First REIT to acquire in the future.