First REIT - OCBC Research 2016-04-19: 1Q16 results within expectations

FIRST REAL ESTATE INV TRUST FIRST REIT AW9U.SI

First REIT: 1Q16 results within expectations

First REIT (FREIT) reported a steady set of 1Q16 results which met our expectations.
Gross revenue grew 7.1% YoY to S$26.5m and this made up 25.7% of our FY16 forecast.
Growth was largely driven by a full quarter of contribution from Siloam Hospitals Kupang & Lippo Plaza Kupang which was acquired in Dec 2015.

DPU rose 2.4% to 2.11 S cents and accounted for 25.2% of our full-year projection.
FREIT’s balance sheet remains healthy, with a gearing ratio of 34.1%, as at 31 Mar 2016.
Looking ahead, management will continue to source for acquisition opportunities within the expanding healthcare sector, supported by a visible pipeline of 44 hospitals from its sponsor, PT Lippo Karawaci Tbk, of which it has a right-of- first-refusal.
We maintain our HOLD rating and S$1.36 fair value estimate on FREIT.

Wong Teck Ching Andy CFA OCBC Securities | http://www.ocbcresearch.com/ 2016-04-19

OCBC Securities SGX Stock Analyst Report HOLD Maintain HOLD 1.36 Same 1.36