First REIT

First REIT: Macquarie hosted senior mgt of PT Siloam Int'l Hospitals at its annual Asean Conference . Siloam is the operator of 17 hospitals in Indonesia. First REIT owns 10 of the hospitals, which are on long term master agreements to Siloam (15 yrs + 15 yrs). Siloam plans to expand from 17 hospitals currently to 40 by end 2017. There are 29 projects in the pipeline, in various stages of completion. This provides a healthy acquisition pipeline for First REIT. First REIT's gearing stands at 32.9%, though without a credit rating, its max gearing is limited to 35%. Macquarie believes the next large acquisition will be funded by a combination of equity and debt. First REIT acquired assets between NPI yield of 10-11% historically. The house rates First REIT at Outperform with TP $1.35.