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First REIT: 3Q 2012.

Thursday, October 25, 2012

As the contribution from the divestment of its Adam Road property has run out, First REIT's DPU sees a reduction of 12.5%, quarter on quarter, from 1.92 to 1.68c.

Year on year, however, DPU has improved from 1.58c to 1.68c.

I would say that First REIT has produced sterling results yet again.

Income distribution is payable on 29 November 2012.

See financial statement: here.

Related post:
First REIT: 2Q 2012.


B said...

Seems to post confident results and outlook which says that healthcare in Singapore and Indonesia in particular present good opportunity.

AK71 said...

Hi B,

Yes, there is really nothing much to say and, hence, this very short blog post. The REIT's numbers and prospects look good. :)

Jay said...

Appears on a good track... better play on Asian healthcare than overpriced IHH, in my view. And better play on Indonesia than LMIR. I think I will sell the latter and change into First..

AK71 said...

Hi Jay,

I believe that First REIT is a solid investment too. However, at the current price, I am reluctant to add to my long position...

tapiocaflash said...

Hi AK,

I received a prospectus yesterday on the REIT's plan to acquire some new properties/assets, could you share your views on this move?


Howyuan said...

Since First is a bit high now, i wonder if Religare is another option. But it is packaged as a business trust and in Indian Rupee.

AK71 said...

Hi Tapioca,

This one?

Acquisitions in Manado and Makasar.

AK71 said...

Hi Howyuan,

I am watching Religare Health Trust as well. I would like to get in at some point but I am not comfortable with how the DPU is supported by waiver on income distributions from the sponsor for only 2 years.

Of course, the Indian Rupee has been depreciating against the S$ too. I guess the currency hedge might have to extend beyond the first two years.

Upon expiry of the sponsor waiver, expect DPU to reduce some 30%. That will tell us what is the real yield of the Trust, everything (including exchange rates) remaining constant.

If the unit price should weaken further to about 72c which would give a distribution yield of 11% for the next 2 years and 7.7% upon expiry of the sponsor waiver, I could initiate a long position. What I need is a greater margin of safety. :)

tapiocaflash said...

Hi AK71,

Yes that was it. ;)


AK71 said...

Hi Tapioca,

Cool. Feels as if I pre-empted your question with that blog post. ;p

K said...


Looking at First Reit (in fact Reits in general too), given most of its NPI are from Indonesia properties and a small portion coming from South Korea, there would be foreign currency risk. However seems like the Annual Report did not mentioned much. yes? Should we consider foreign currency risk forming big portion of returns as a major issue?


AK71 said...

Hi K,

Of course, we should consider forex risk if an entity derives most of its income in foreign currencies. After all, we are living in Singapore and spending S$. :)

First REIT's income from its Indonesian properties are in S$, if I remember correctly, while its income from its Korean properties are in US$.

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