First REIT announced their first quarter 2013 results. You can view the results here.
Nothing out of the ordinary but revenue was way better due to the full quarter contribution from their purchase late last year, which only contributed one month in the last quarter.
The latest acquisition, which increases the asset size by 25%, is not factored in and will only contribute probably end quarter 2, so we won’t see them fully factored in.
There are also some asset enhancements taking place in Singapore, scheduled to be completed in quarter 2 as well. This, I don’t think I am expecting a large contribution.
The payout this quarter is 1.74 cents, which First REIT annualize to 7 cents ( I annualized it and only got 6.9 cents!)
Even if 7 cents, the current yield, as observed on my Dividend Stock Tracker, is 5%. To put that in perspective the price to book value have not been this wide for the longest time that I can remember. So it does look pricy.
The interest finance cost works out to be 3.9%, so that also puts this into perspective.
While note that the new acquisitions are finance by almost 70% debt, 30% new placement, the interest expense and dilution will take place.
Nevertheless we are estimating an annualize dividend of 7.5 cents.
This works out to 5.3% yield
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Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend. All opinions on Investment Moats are his own and does not represent the views of Providend.
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mosi_sg
Tuesday 23rd of April 2013
OT: Congratulations on wrapping up the title. The second goal was a beauty - similar to the volley that he scored last season.
Kyith
Wednesday 24th of April 2013
Haha mosi thanks. A sigh of relieve. Yes second was great by any standards. Strangely he makes it look easy. His left foot is a magic wand.
Still this season don't feel complete for some reason. Perhaps we didn't compete as well as I hope