First REIT this evening announced their 4th quarter and full year 2011 results. Here are some take-aways
- Net property income is climbing gradually: 13.0 mil > 13.1 > 13.47 > 13.77
- Rental Income climbed in all regions, not just in Indonesia but also for their Singapore and Korea properties
- 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.
- This years distribution is 7.01 cents. At 77 cents that is 9.01% yield this year.
- Assets continue to increase in fair value.
- Debt to property is 16%
- Net Debt to Asset is only 9%
- Indonesian property values have been rising compare against Singapore properties which are not doing that well.
- 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.
- 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
- 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.
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