First REIT

First REIT: After a recent site visit, Voyage found the following traits of its assets: i) all the assets are strategically located along key toll roads or in the middle of the CBD for easy accessibility; ii) assets with longer operating history are properly maintained and have utilization rates of 75+%, suggesting the possibility of AEI; and iii) newer hospitals were equipped with high-end machines and network integration across buildings are relatively rare in Indonesia; Over the last few months, there were concern over the depreciating rupiah and economic turbulence but house reckon that the impact is minimal given their S$ based rental structure and defensive nature. Measures were also adopted recently to lower their floating bond exposure and extend their loan duration. First REIT now trades at FY14 dividend yield of 7.0%, Voyage has an Overweight rating on First REIT with TP $1.44.