ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

Lippo Breaks Ground on $26 Million Hospital in Makassar

http://www.thejakartaglobe.com/business/...sar/415695

The hospital will be ready by end of the year. In addition, the company is investing US$44 million for majority stakes in 2 other hospitals in Sumatra and Kalimantan. First REIT gearing stands at 17.6% hence giving it around $75 million debt head-room to further acquire assets from its sponsor this year in order to achieve its goals of transforming into a $1 billion REIT by 2013. If it spends $75 million, its gearing will be around 25% which is a reasonable figure. I wonder will First REIT consider joint-development projects (capped at $60 million now) with its sponsor to grow its asset base organically ?

On another note, I think it is note-worthy that First REIT has managed to trade above its NAV for the first time ever !

(Vested)

First REIT posts 3% jump in 4Q 2010 distributable income; kickstarts FY2011 with two new hospitals

http://info.sgx.com/webcoranncatth.nsf/V...F00368096/$file/First_REIT_4Q_2010_PR_21Jan11.pdf?openelement [Press Release]

http://info.sgx.com/webcoranncatth.nsf/V...F003A42B7/$file/FY_2010_PPT_21Jan11_amended.pdf?openelement [PPT Slides]

http://info.sgx.com/webcoranncatth.nsf/V...F0035D2E5/$file/SGXnet_FY_2010_Q4_-_21Jan11.pdf?openelement [SGX Announcement]

First REIT announced a 0.87 SG cents DPU for 4Q 2010. It also provided a 1.6 SG cents quarterly DPU guidance for FY 2011. Gearing remains low at 17% which leaves significant room for acquisitions in the coming quarters from its sponsor. I expect FR to acquire more hospitals this year to further increase its distributable income and asset base.

The distribution is payable on 28 Feb 2011.

(Vested)

3 sets of research reports covering the latest set of results:

http://firstreit.listedcompany.com/misc/...6Jan11.pdf [SIAS Research]

http://firstreit.listedcompany.com/misc/...5Jan11.pdf [OCBC Research]

http://kfc1973-stock.blogspot.com/2011/0...-line.html [CIMB Research]

Nothing interest except for the bit outlining the 3 potential acquisitions to be made in 2011. Since both the SIAS and CIMB reports mentioned about it, I am quite certain FR Management must have stressed about it in the analyst briefing. FR do have the space for debt funded acquisition so let's see how it unfolds in the coming quarters.

(Vested)

Stability in times of risk aversion

http://www.remisiers.org/cms_images/Firs...18-OIR.pdf

OCBC released a report detailing updates on its sponsor, Lippo Karawaci, financial performance.

(Vested)

SALE OF ADAM ROAD HOSPITAL, NO 19 ADAM ROAD SINGAPORE 289891

http://info.sgx.com/webcoranncatth.nsf/V...000525F02/$file/Announcement_Sale_of_Adam_Road_Investment_Property.pdf?openelement

First REIT is divesting the site to Fortis for $33 million which represents a $4.8 million gain based on the latest valuations or a $11.3 million gain based on its cost price of $21.7 million.

Very good piece of business. First REIT gearing will drop to 14.2%. I expect more acquisitions in 2011 to boost its DPU further.

(Vested)

OCBC did a short write up on FR's latest divestment. It lowered its TP to $0.80 until more acquisitions are made to boost its asset base and DPU.

http://www.ocbcresearch.com/Article.aspx...0616_97135

First REIT CEO purchased 118,000 units in the previous week. I look forward to acquisitions of more Indonesian health care assets this year.

(Vested)

Healthcare REITs

Robust outlook underpinned by strong growth drivers

http://www.remisiers.org/cms_images/Heal...10-OIR.pdf

After completion of the sale of the Adam Road Cancer Center to Fortis Healthcare for $31 million in Apr 2011, First REIT gearing will decline to 14.2%. It is highly expected that First REIT will acquire new hospitals from its sponsor Lippo Karawaci in the coming year to further boost its NPI and asset size.

(Vested)

First REIT releases 1Q results tomorrow (20 Apr 11).

Any chance of a special distribution being declared using a portion of the gains made from the sale of the Cancer Center to fund it haha ?

Hope they can meet the 1.6 SG cents forecast.

capital gain is not for distribution, I think.

they would rather re-invest it.