First REIT Full Year 2011 Results Stagnating

First REIT this evening announced their 4th quarter and full year 2011 results. Here are some take-aways

1. Net property income is climbing gradually: 13.0 mil > 13.1 > 13.47 > 13.77
2. Rental Income climbed in all regions, not just in Indonesia but also for their Singapore and Korea properties
3. Larger distribution this quarter similar to that of 3rd quarter, as part of the sale of Adam Road property. Total distribution investors will enjoy is 1.93 cents.
4. This years distribution is 7.01 cents. At 77 cents that is 9.01% yield this year.
5. Assets continue to increase in fair value.
6. Debt to property is 16%
7. Net Debt to Asset is only 9%
8. Indonesian property values have been rising compare against Singapore properties which are not doing that well.
9. Korea Hospital is freehold. Based on rental yield it seems the yield is only 4.9% which is rather low. Freehold is great but I don’t remember the property yield to be this low.
10. First REIT have first rights of refusal to Lippo Karawaci’s hospital pipeline. On top of this there is a slew of government measures aimed at making healthcare more affordable to Singaporeans. All these presents opportunity to First REIT
11. NAV of 80.5 cents > current share price of 77 cents

Excluding the special dividends from the sale of Adam Road, the distribution did not grow much. I wonder whether that will be a trend. There are rental escalation build into it so we would have expected more.

Then again I may be over analyzing since they sold Adam Road and added a Korea Hospital yet was able to maintain the rental distribution.

Will be expecting much dividends as this is currently my largest holding.

I run a free Singapore Dividend Stock Tracker . It  contains Singapore’s top dividend stocks both blue chip and high yield stock that are great for high yield investing. Do follow my Dividend Stock Tracker which is updated nightly  here.

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Kyith

Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.

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Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.

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