First Reit

First Reit: posted healthy 2Q12 results with revenue rising 6.1% yoy to $14m, while net profit inched up 1.1% yoy to $8.8m Sias notes the Reit is currently evaluating the right of first refusal properties from Lippo Karawaci, speculates the Reit may acq some assets over the next 2-3 mths. Estimates the new assets, valued at ~$100m, will generate ~$3m distributable profit annually and boost DPU from 1.59cts and 1.71cts over the 3Q12 to 4Q12 period. Notes First Reit may need to tap the equity mkt if the value of the targeted assets is more than $150m. Says First Reit has generated a solid performance over the past 1yr (outperformed FTSE REITS Index by 14.8% and the STI by 23.1%). Maintains Buy with TP $1.02, for the attractive FY13e yield of >7%, and >1.3% yield spread over Parkway Life Reit.