Search results
- As one of the two healthcare REITs listed on SGX, what are the idiosyncrasies of being a healthcare REIT? Healthcare REITs own, operate, manage, acquire, and develop healthcare and healthcare-related assets.
- Having a “moat” or a competitive advantage is something many investors look for in companies they invest in. Can you share how First REIT has a strong advantage?
- Can you tell us what First REIT’s 2.0 growth strategy is, in a nutshell? First REIT’s 2.0 Growth Strategy consists of 4 strategic pillars, with the aim of balancing portfolio growth and stability to create long-term sustainable value and distributions to all our unitholders
- Can you explain what is the social framework that First REIT launched? In line with 2.0 Growth Strategy to strengthen capital structure and pivot to ride megatrends, First REIT initiated a Social Finance Framework (SFF) in March 2022 which forms the foundation for a new mode of financing tied to attaining sustainable social goals.
3 days ago · First REIT is a healthcare-focused REIT that owns hospitals and nursing homes in Indonesia, Japan and Singapore. It has come a long way since restructuring its master lease agreement by adding investments in nursing homes and its geographic exposure.
Dec 5, 2020 · Here’s what you exactly need to know about First REIT’s recent lease restructuring announcement. For years, First REIT (Ticker: AW9U.SI) was a market darling. And it stood out because it was different from all the other big Singapore REITs .
- Growing Stable Income in Developed Markets Via Recent Expansion Into Japan.
- Watch For Capital Recycling Activities.
- Key Catalysts & Key Risks
- First REIT – valuation & Peer Comparison
First REIT made its first foray into Japan nursing homes in March 2022 via the acquisition of 12 Japan nursing home assets for ~ S$163m from its sponsor, i.e., OUE Group (OUE (SGX:LJ3) and OUE Lipp...In our view, we believe the rental structure of Japan assets is stable, backed by a long lease profile of 30 years and fixed annual rents, with a possible revision every two to three years (or five...Currently, First REIT's Japan portfolio contributes ~14% of rental income. Including the Singapore portfolio, First REIT’s developed market assets contribute ~15% of FY22 rental income and ~28% of...Over the medium to long term, management of First REITaims to increase AUM exposure to developed countries to >50%, which will help increase its stable income from developed markets.Moreover, further optimisation of its portfolio through the divestment of non-core, non-healthcare assets and mature healthcare assets will further strengthen its portfolio and provide some firepow...In Sept 2022, First REITdivested Siloam Hospitals Surabaya for a total of S$71m (including fees to terminate the development work).Going forward, over the medium term, First REIThas earmarked a list of non-healthcare assets for potential divestment including the Imperial Aryaduta Hotel & Country Club (IAHCC), a non-core asset...We believe the divestment of non-core assets can help generate firepower for expansion activities in the medium to long term, e.g., potential expansion into Japan or other markets such as Australia.Positive catalysts for First REIT includeWe believe these catalysts can aid with the upward rerating of First REIT’s share price.Key risks for First REIT in our view, includeWe note that a weaker-than-expected operational performance due to a sharp economic slowdown, increased competition amongst healthcare providers, and more, can impact Siloam’s earnings, which can s...Initiate with BUY recommendation and target price of S$0.30, based on DCF valuation.
1. In consideration of the concentration risks (to Indonesia and LPKR) and forex risks borne by unitholders, we assume a beta of 2.0x, which leads to a cost of equity estimate of 15.1%. After assuming an effective interest cost of 5.0% (1Q23 of 4.7%) and gearing ratio of 39.0% (as at 1Q23), this leads to an after-tax cost of debt estimate of 3.8%. 2. Overall, we estimate First REIT’s WACC to be 10.7%. 3. For our DCF valuation model, we forecast FCFF from FY23F to FY35F based on the MLAs for e...
Trading at an attractive valuation relative to pre-restructuring levels.
1. First REIT is currently trading at a forward P/B ratio of 0.9x, which is at -1 standard deviation of the historical average forward P/B ratio of 1.0x before the MLA restructuring. Furthermore, First REITis currently witnessing a firm forward dividend yield of ~10%, at +1 standard deviation of the historical average dividend yield of 8%. 2. Trading at a discount relative to peers. First REIT's peers are trading at a forward book value of 1.0x, with a dividend yield of ~9%. 3. Read the 38-pa...
Jun 21, 2024 · First REIT - Embracing Fixed JPY Loan For Stability & Potential Higher Rent Escalation
Sep 14, 2023 · First REIT has been on a remarkable journey of financial resurgence, showcasing a balance of growth and stability in its financial performance, actively executing its “2.0 Growth Strategy”. Since the quarter ended March 2021, the REIT has seen a steady improvement in its rental income in local currency terms, thanks to its master ...
Jun 6, 2024 · The local exchange features just two healthcare REIT – First REIT (SGX: AW9U) and Parkway Life REIT (SGX: C2PU), or PLife REIT. We compare these two REITs on various metrics to...
