First REIT

First REIT: Good set of results which was inline. DPU at1.93c, +22.2% yoy and flat qoq, while distributable income +23.1% yoy and flat qoq to $12.17m.With an annualized DPU of 7.07c and a closing price of 96.0 cents on July 23, First Reit registered a distribution yield of 7.4%. Results were due to contribution of Sarang Hospital in South Korea and higher rental income from rest of its properties. Grp will be turning its attention to the Indonesian market in the coming period, where Fitch Ratings recently upped the country's investment grade status a notch to BBB-minus while Moody's has raised its foreign and local currency ratings to Ba1. In SG, grp's five-storey extension block for The Lentor Residences is slated to be completed later this yr and will be part of asset enhancement for its properties.Going forward, grp aims to look for new yield-accretive acquisitions for its portfolio with a view to raising our portfolio size to at least $1 billion in the short to medium term. We note that gearing remains low at 15.9%, well below the regulatory limit of 35% and trades at 1.2x P/B.