Thursday, January 24, 2013

First REIT

First REIT: Good set of results, which was in-line, 4Q12 NPI at $15.3m, +11% yoy and DPU at 1.72c, +8.2% yoy. Result brings FY12 NPI to $57.6m, +6.7% yoy and DPU at 6.58c, +3.9% yoy. Good performance was largely due to higher rental income from the existing properties and maiden contributions from two new properties in Indonesia - the Siloam Hospitals Manado and Hotel Aryaduta Manado, which were acquired in Nov12. Contributions from the two new properties are expected to further boost grp's NPI, and the full impact of the contributions will be realized from 1Q 2013. Going forward, grp will continue to focus on expanding its footprint in Indonesia as its Sponsor, Lippo Karawaci, continues its expansion of hospital projects in various parts of Indonesia. Fundamentals in other parts of Asia also look strong which may serve up opportunities for First REIT to expand. We note that grp's fundamentals remain strong, with leverage ratio at 27.1% and grp's properties at 100% occupancy. At current price, grp trades at 1.3x P/B and 6,1% yield. Ratings as follow: OCBC maintains Hold with $0.98 TP

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