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