Thread Rating:
  • 1 Vote(s) - 5 Average
  • 1
  • 2
  • 3
  • 4
  • 5
First REIT
21-11-2018, 01:22 PM.
Post: #281
RE: First REIT
(20-11-2018, 09:54 PM)kelvesy Wrote: LTM revenue for First REIT = 115m. They have 31.8m trade receivables. TR % of LTM revenue = 27.6%. Why does FIRST Reit even have trade receivables as a landlord? Higher receivables = DPU has to be funded from existing cash balances or debt instead of organic operations or raising the possibility of future lower DPU.

From 3Q-2018 report.

Trade and other receivables increased from S$26.0 million to S$49.3 million mainly due to advance rental receivables from tenants. On 15 October 2018, the Trust has received rental payments amounting to S$17.5 million from tenants.

Find Reply
12-03-2019, 09:24 PM. (This post was last modified: 12-03-2019, 09:34 PM by weijian.)
Post: #282
RE: First REIT
First REIT's parent and largest debtor has deleveraged and it seems like its other siblings (OUE Lippo Healthcare and LMIRT) are paying the bill. Good news for First REIT overall.

Lippo Karawaci secures US$1b in funding; names new CEO and CFO in transformation plan

Of the US$1.01 billion in funding, US$730 million was from the rights issue underwritten by the Riady family, and US$280 million was from the completion of Lippo Karawaci's asset divestment plans.

https://www.businesstimes.com.sg/real-es...ation-plan

Find Reply
01-10-2019, 06:27 AM.
Post: #283
First REIT
https://links.sgx.com/1.0.0/corporate-an...190926.pdf

The manager of First REIT has just sold 2,542,300 units of share via market transaction.

Is it something to be worried about when an insider is selling their shares?


Sent from my iPhone using Tapatalk
=========== Signature ===========
Using Tapatalk

Find Reply
01-10-2019, 03:19 PM.
Post: #284
RE: First REIT
(01-10-2019, 06:27 AM)Xiaosaint Wrote: https://links.sgx.com/1.0.0/corporate-an...190926.pdf

The manager of First REIT has just sold 2,542,300 units of share via market transaction.

Is it something to be worried about when an insider is selling their shares?


Sent from my iPhone using Tapatalk

The manager has been increasing their stake from 61M to 80M shares or 7.7% to 10.1% (Apr to Sep 2019).

This is the first time RM has sold 2.5M shares. Share holding drops to 9.8%.

So, In my opinion, I won't be worry too much for now unless RM continue to trim their holding.

Find Reply
06-10-2019, 01:57 PM.
Post: #285
RE: First REIT
I recalled reading it was Bridgewater International, a subsidiary that sold the shares, and IT"S NOT OUE LIPPO HEALTHCARE, the mgr, right ? I am open to corrections, forummers,...

I read too that Bridgewater then bought further stakes in something related to LMIRT, after the same date. So, the funds could have been used to buy LMIRT-related stakes ?

Find Reply
07-10-2019, 10:29 AM. (This post was last modified: 07-10-2019, 11:47 AM by mobo.)
Post: #286
RE: First REIT
The biggest underlying grey Rhino sitting within First is the opaqueness of its lease agreements with sponsor Lippo and its various healthcare related entities. The consensus now is that these leases were not done on an arm’s length basis, resulting in significant transfer of temporary value from the leaser (Lippo) to the landlord (First). This appears to be a roundabout longer termed income support mechanism to offload mothership properties at inflated rates.

The first wave of lease expiries are due late 2020 and the dominoes will henceforth continue persistently to fall all the way till 2029. If such leases are renewed at a sustainable market rate, there will likely be a significant drop in rental income with each renewal. The extent of rental reduction remains hard to predict though some analysts have tried to estimate the rental gap using topline figures disclosed in Lippo Healthcare and Lippo Karawaci. Regardless though, none of the estimates so far look pretty.

To further compound the situation, the IDR has been depreciating against SGD over the long term, further straining the finances of the leasers and from an objective POV, it really doesn’t make any sense for the hospitals to do business exclusively in Indonesia while having their main cost denominated in SGD. This only further fuels speculation that any renewal will likely not only readjust rates downwards, but do away with the fixed IDR:SGD collar which essentially means FIRST’s income will slowly become subject to IDR volatility.

What will Lippo/First do next?

Looking at their not so illustrious track record in LMIR and OUEC, it is likely they will seek to inject a whole lot of healthcare assets inside and outside Indonesia into the REIT at a price supported by some sort of creative financial engineering that temporarily transfers value to First. The size of the injection will depend on their assessment of market appetite at that time and also the size of the “rental hole”. Investment bankers will play on the following levers to try and come up with something palatable:

1. Renewal terms including rates, currency and length for existing properties
2. Financial engineering and level of temporary value transfer
3. Nature of EFR – Rights issue, private placement, hybrid instruments, preferential offers etc.
4. Selling price of the new properties
5. Funding ratio
6. Mixing NPI Yields of assets from different countries to achieve optimal outcome

It’s actually a very challenging piece of work for the investment banker and Lippo. The best outcome for Lippo and existing unitholders is for them to figure out something that looks presentable enough to paper over the big hole without collapsing the unit price due to lose of confidence. My sense is even if the solution is impeccably executed, it would ultimately still be a “kick the can further down the road” variant as any fundamental correction of past wrongs will require truing up which will paradoxically cause even more value destruction.

If Lippo has any cow sense left, the logical way they would do things is try to structure their deal making which allows a gradual truing up of the "hole" over the next 10 years without fundamentally shaking investor confidence and unduly causing alarm. They will require a combination of good luck factors such as benign market conditions, stable IDR, low level interest rates and breathing space for mothership support in order to pull it through.

Find Reply
07-10-2019, 06:52 PM. (This post was last modified: 08-10-2019, 12:20 PM by specuvestor.)
Post: #287
RE: First REIT
Actually Lippo has much more than cow sense... but it is self-interest sense. The focus is very different so they do have their logic but not the same as what you think.

It is generally hazardous to dance with the Indonesian tycoons. Even Rothschild, Wee or Ananda Krishnan were not spared.
=========== Signature ===========
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)

Find Reply
08-10-2019, 09:06 AM. (This post was last modified: 08-10-2019, 09:07 AM by corydorus.)
Post: #288
RE: First REIT
The market is so big. I don't see why the need to challenge tycoons. Very reason I sold my position earlier.
=========== Signature ===========

Just my Diary
corylogics.blogspot.com/



Find Reply
14-10-2019, 01:09 AM.
Post: #289
First REIT
https://secure.fundsupermart.com/fsm/art...e-pressure


Sent from my iPhone using Tapatalk
=========== Signature ===========
Using Tapatalk

Find Reply
21-10-2019, 08:42 AM.
Post: #290
First REIT
A good read, for those who have not caught on, on the key risks that First REITs is currently facing.


https://seekingalpha.com/article/4297344...ncertainty


Sent from my iPhone using Tapatalk
=========== Signature ===========
Using Tapatalk

Find Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)
Valuebuddies.com | Return to Top | Lite (Archive) Mode | RSS Syndication | CONTACT US: nas......@valuebuddies.com | | Share Buy-Back | Disclosure of Interest