First REIT

First REIT: Results in-line with expectations. DPU of 1.93c declared which is same as that of 4Q11. 1Q rev at $14.0m +6.3% yoy +0.6% qoq with net profit at $9.5m +28.4% yoy -44.5% qoq though last quarter included fair value gains of $14.4m. Note that the DPU includes a portion of the total gain of $8.7m on divesting the Adam Rd property and the balance will be distributed in future periods as well. The REIT trades at 8.3% annualized yield based on current DPU. OCBC downgrades from Buy to Hold but raises TP from $0.89 to $0.935 though results were within expectations due to valuations.