- First REIT (SGX:AW9U) is Singapore’s first healthcare REIT that focuses on investing in healthcare and healthcare-related real estate assets within and outside of Asia.
- As at FY22, First REIT has 32 assets with assets under management (AUM) of S$1.15bn, with 15 assets in Indonesia (72.1% of AUM), 14 nursing homes in Japan (25.1%), and 3 nursing homes in Singapore (2.8%), with a WALE of 12.2 years (as at 1Q23).
Worst is over; a more sustainable master lease structure is now in place for First REIT
- - Read this at SGinvestors.io -
- will be paid in Indonesian rupiah (IDR) (versus S$ previously).
- Most importantly, we believe rebased rents are now more sustainable for hospital operator Siloam, with rent as a percentage of EBITDAR1 estimated to be in the range of 40%-45%, aligned with the industry, versus an estimated 60% prior to the restructuring.
- Furthermore, with Siloam being added as a party in the MLAs, First REIT will be able to directly collect its rent from its hospital operator and reduce its concentration risks to LPKR, suggesting that First REIT’s rents will be more correlated to the performance of Siloam.
Potential upside from growing in tandem with high long-term growth trajectory of Siloam.
- Read more at SGinvestors.io.
