Tuesday, 17 January 2017

First Reit: 2.13 DPU for 4Q

I predicted that First Reit 4Q distribution per unit (DPU) will be 2.13 cents (up 4 cents from 2.09) due to the acquisition of  Kupang Property comprising Siloam Hospitals Kupang and Lippo Plaza Kupang in Dec 2015.  Revenue for 4Q went up 5.1 per cent to S$27 million. The net property income recorded a 5.2 per cent YOY growth to S$26.7 million. The revenue for the year grew 6.3 per cent year on year to S$107 million, while net property income climbed 6.6 per cent to S$105.8 million.  First Reit recently completed the acquisition of Siloam Hospitals Labuan Bajo in Indonesia. Health care will continue to do well under President Joko's emphasis and ageing population.  The main sponsor PT Lippo Karawaci has 43 hospitals and First reit has the right of first refusal of the hospitals.

I have brought large quantity of First Reit using cash and SRS when i noticed a window of opportunity using Technical Analysis. Reason is because First Reit has a good business model, a strong management and sponsor. In a volatile market, i will look for defensive stocks and Reits that have strong fundamentals, and consistently produce good dividends or DPU. My strategy for First Reit is for passive income generation and will continue to buy more if there is more opportunity. 

Source: Chartnexus

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