First REIT

First REIT: Good set of 3Q12 results which was in-line, with NPI at $14.2m, +5.2% yoy and +2.2% qoq, while DPU at 1.68c, +6.3% yoy and -12.9% qoq. Annualized DPU translates to a 6.7% yield and 1.35x P/B. Strong performance led by contributions from its Sarang Hospital in South Korea and higher rental income from its properties in Indo and SG, whereby the Trust recorded a 3.7% increase in gross rev from higher rental income from all its properties. Distributable amount also boosted by other gain distribution on the divestment of the Adam Road property. Going forward, grp note that Indo’s healthcare market continues to present many opportunities, boosted by the country’s fast-growing middle class and a shortage of hospital beds, particularly for private hospitals of international standards. While in SG, First REIT’s new 5-storey extension block for The Lentor Residence, undertaken as part of its asset enhancement strategy for its properties, will be completed in 4Q12.