Sponsored Links

To retire by age 45, start with a plan.

"Is early retirement the right financial choice?" Jim Ellis discusses long-term financial growth strategies. I have blogged a...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.

Archives

"E-book" by AK

Second "e-book".

Another free "e-book".

Pageviews since Dec'09

FOLLOW AK ON FACEBOOK.

Recent Comments

ASSI's Guest bloggers

First REIT: FY2011 results.

Thursday, January 26, 2012

DPU for 4Q 2011 is 1.93c which is another bumper distribution! The REIT will go XD on 1 February and the income distribution is payable on 29 February.


This includes distribution coming out of a portion of the total gains on divestment of the Adam Road property of about S$8.7 million.

Without such a return of capital, the DPU for 4Q 2011 is 1.61c. Annualised DPU is, therefore, estimated to be 6.44c. To calculate a more realistic distribution yield, we have to use this number. At the unit price of 77c, we get a distribution yield of 8.36%.

NAV/unit: 80.5c
Gearing: 16%
Interest cover ratio: 12.3x

Technically, volume has been rising but price has plateaued at 77c which seems like a difficult resistance to overcome.



How would Mr. Market react to the REIT's results? Could we see price action breaking resistance at 77c and going higher? If resistance should be overcome, there is a chance of a retest of 80c which I see as the upper end of a trading range.

See presentation slides: here.

Related post:
First REIT: Bumper distribution 3Q 2011.

2 comments:

Dividends Warrior said...

First REIT is doing well.

Singapore's population is aging. We need more nursing homes.

Lentor Residence is building a 5-storey extension for the increasing demand.

Just a question. Do you think the DPU can be maintained at around 1.93 cents level next year?

AK71 said...

Hi DW,

In the absence of fresh acquisitions fully funded by debt or significant AEI, I feel that a more realistic quarterly DPU is in the region of 1.6c to 1.65c.

Without considering the return of capital from the sale of its Adam Road property, to have a cosistent 1.93c quarterly DPU would require approximately 20% increase in distributable income. Keeping the status quo, this would be a tall order. :)

Monthly Popular Posts

 
 
Bloggy Award