Sunday, 27 October 2013

First Reit - Better Performance and Prospect

First Reit released last Q report on 25 Oct Friday after market closed.
 
It posted a 30.4% yoy increase in distributable income to unit holders to $13.8 million for the quarter ending 30 Sep. Net property income and gross revenue surged 53.4% and 60.7% to $21.7 million and $22.8 million respectively yoy. 

The growth was mainly attributable to the full quarter contributions from the four newly acquired properties, Siloam Hospitals Makassar and Siloam Hospitals Manado & Hotel Aryaduta Manado, as well as Siloam Hospitals Bali and Siloam Hospitals TB Simatupang, which were acquired in November 2012 and May 2013 respectively.

It declared a 16.7% increase in DPU of 1.96 cents, compared to 1.68 cents in the same period last year. 

The result reassured that the recent IDR currency volatility indeed had limited impact to this counter, and the price drop was overdone. As of now, the current yield is about 6.6%, and the Price/NAV is at 1.25. It has strong support at 1.00-1.01. 
 
Ever since late Sep, the unit price is getting support ( See chart). I am eager to see how much the price will go up next Monday. Will it break up the resistance of 1.15 at which the counter started to fall amid IDR volatitity concerns ? I had vested 4 lots and would like to add more into my portfolio when timing is right.
 
 

 

1 comment:

  1. 2014 could be a tough year due to soft net property income because of AEI works which are way overdue now on Siloam Hospitals Kebon Jeruk, Siloam Hospitals Surabaya, Imperial Aryaduta Hotel & Country Club; these properties probably face serious wear and tear now as they were built in years 1991, 1977, 1994.

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