RHT HealthTrust (formerly: Religare Health Trust)

[Nick]

This could be the first listed healthcare business trust in SGX. Fortis is seeking to raise around $0.5 billion in this IPO and forecast dividend yield of 8.5 - 9%.

http://masnet.mas.gov.sg/opera/sdrprosp....7003E1692/$File/Project%20Sapphire%20Preliminary%20Prospectus%20dated%2028%20September%202.pdf [Preliminary Prospectus]

[KopiKat]

This could be the first listed healthcare business trust in SGX. Fortis is seeking to raise around $0.5 billion in this IPO and forecast dividend yield of 8.5 - 9%.

http://masnet.mas.gov.sg/opera/sdrprosp....7003E1692/$File/Project%20Sapphire%20Preliminary%20Prospectus%20dated%2028%20September%202.pdf [Preliminary Prospectus]

From pg 99, the yield is based on DPU due to waiver by sponsor of their entitlement for FY13 (Mar) and FY14 (Mar) + 100% payout ie. inflated by ~2.5% due to this waiver. From FY15 onwards, no more sponsor waiver + 90% payout - that means earnings have to grow to give similar yields.

[changwk]

What is the difference between REIT and business trust.
First REIT will be in the similar business.

[freedom]

the difference is that First Reit owns the properties those hospitals operate in, not the hospitals, but religare health trust operates the hospitals.

[lonewolf]

From pg 99, the yield is based on DPU due to waiver by sponsor of their entitlement for FY13 (Mar) and FY14 (Mar) + 100% payout ie. inflated by ~2.5% due to this waiver. From FY15 onwards, no more sponsor waiver + 90% payout - that means earnings have to grow to give similar yields.

I'm willing to bet that the yield would remain or maybe even possibly higher due to a drastic drop in the unit price.

Just say no to Business Trust!

[Nick]

The Sponsor is operating most of the Hospitals based on the initial IPO portfolio. I guess like Ai-Trust - INR / SGD rates is going to be an issue ?

[KopiKat]

From pg 99, the yield is based on DPU due to waiver by sponsor of their entitlement for FY13 (Mar) and FY14 (Mar) + 100% payout ie. inflated by ~2.5% due to this waiver. From FY15 onwards, no more sponsor waiver + 90% payout - that means earnings have to grow to give similar yields.

I'm willing to bet that the yield would remain or maybe even possibly higher due to a drastic drop in the unit price.

Just say no to Business Trust!

Haha.. Having invested before into possibly the entire spectrum of listed Trusts in SGX, from Real Estate to Shipping to Infrastructure, and experiencing what you'd mentioned, I'm not going to bet with you...

But I must say that the super-duper roller coaster experience from the above had made me a much more nimble and decisive investor!

---

The Sponsor is operating most of the Hospitals based on the initial IPO portfolio. I guess like Ai-Trust - INR / SGD rates is going to be an issue ?

The pedigree of the Sponsor will be another factor to consider. IIRC, they're highly geared and may not be financially as strong as Ascendas...

[HitandRun]

I guess like Ai-Trust - INR / SGD rates is going to be an issue ?

I think so too. Incidentally, INR weakend ~30% against the SGD in the last 3 years...

[majSirus]

why didnt they list the 201/2011 financial statements?

[Nick]

why didnt they list the 201/2011 financial statements?

I doubt the business trust (or any business trust or REIT) would exist at least 1 year before an IPO.

You can see the F/S of HPH Trust, KGT, Sabana REIT etc during the first year of listing - they did not do any comparison with the previous year result as they did not exist then.