First REIT: Announced strong 4Q11 set of results which were ahead of estimates. NPI at $13.7m, +82.2% yoy and flat qoq, while DPU at 1.93c, +121.8% yoy and flat qoq. Result brings FY11 NPI to $53.4m, +78.9% yoy and DPU at 7.01c, +105% yoy.
Strong performance was mainly due to the maiden contributions from two new properties in Indonesia – namely, Mochtar Riady Comprehensive Cancer Centre and Siloam Hospitals acquired in Dec10, as well as the South Korean Sarang Hospital acquired in Aug11 and divestment gains from grp’s Adam road property.
Going forward, grp appears confident of prospect, citing that its resilient structure has held out well, providing consistent growth across all its properties. Believe that the healthcare mkt in Asia is largely underserved and continues to hold potential growth prospects and aims to continue exploring yield-accretive acquisitions in Asia.
We note that grp’s fundamentals remain strong with a low Leverage ratio of 16%, with a very comfortable 12.3x interest coverage ratio. At current price, grp trades at 0.95x P/B with a robust yield of 9.2%.