First Real Estate Investment Trust

First Real Estate Investment Trust: Posted good set of results which was in-line. Stripping the gain on divestment of the Adam Road property, which was paid in Q3 2011 through to Q2 2012, the DPU of 1.74c represents an improvement of 9.4% over the 1.59c yoy. Results was led by gross revenue, +25.0% to $17.5m, mainly due to the full quarter contribution from the two new properties acquired in Nov12 – Siloam Hospitals Manado & Hotel Aryaduta Manado, and Siloam Hospitals Makassar. Going forward, First REIT will continue on its expansion path by searching for more yield-accretive, quality healthcare assets in Asia, especially in particular, Indonesia, is expected to see steady growth in its healthcare expenditure, supported by the govt’s on-going initiative to attain universal health coverage for its population. Its sponsor, Lippo Karawaci, has another 15 hospitals to which First REIT has first right of refusal, providing a steady and strong pipeline of healthcare assets available for acquisition. At current price, grp trades at an annualized yield of 5.1% with a 1.7x P/B. Share price been hitting 52 wks highs. Ratings as follows: OCBC maintains Hold with $1.31 TP