First REIT

First REIT: 2QFY14 DPU was 8.1% y/y higher at 2¢, its highest since listing, while distributable income rose 13.6% to $$14.4m. Gross revenue and NPI were 14.5% and 15.4% higher respectively at $23m and $22.7m respectively, on contributions from Siloam Hospitals in Purwakarta, Bali, and Simatupang. Occupancy is currently full, and lease terms are 10-15 years per property. Aggregate leverage stood at 32.9%. Management guided that the presidential elections in Indonesia is not expected to impact the healthcare industry in the short to medium term. Also, growth prospects remain buoyant as the Reit looks to further acquisitions, from its sponsor, Lippo Karawaci’s strong pipeline of 24 quality hospitals. There could also be 3 potential AEIs in the pipeline.