First REIT - OCBC Investment 2017-10-16: Acquisition In Yogyakarta Together With LMIRT

First REIT - OCBC Investment 2017-10-16: Acquisition In Yogyakarta Together With LMIRT FIRST REAL ESTATE INV TRUST AW9U.SI

First REIT - Acquisition In Yogyakarta Together With LMIRT

  • First REIT (FREIT) has entered into a JV with Lippo Malls Indonesia Retail Trust (LMIRT) involving the joint acquisition of an integrated development from its sponsor, PT Lippo Karawaci Tbk, in Yogyakarta, Indonesia. 
  • The hospital component, known as Siloam Hospitals Yogyakarta (SHYG), comes at a purchase consideration of S$27.0m and will be borne by FREIT. SHYG has a gross floor area of 12,474 sqm with a maximum capacity of 220 beds. 
  • This transaction is accretive, given that SHYG will generate a rental yield of 9.0% based on the initial base rent of S$2.43m per annum and will finance this by a combination of a drawdown from its debt facilities and internal cash. On a pro forma basis, DPU for 6M2017 would have risen slightly from 4.28 S-cents to 4.30 S-cents.
  • We maintain our HOLD rating and fair value estimate of S$1.38.




Joseph Ng OCBC Investment | http://www.ocbcresearch.com/ 2017-10-16
OCBC Investment SGX Stock Analyst Report HOLD Maintain HOLD 1.380 Same 1.380



Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......