First REIT (SGX: AW9U) is a healthcare REIT that invests in a portfolio of diversified healthcare assets in Indonesia, Singapore and South Korea.. " The net proceeds from the Property Divestment would be approximately US$4.3 million and may be used to fund potential acquisition opportunities, repay existing indebtedness and/or fund general corporate and working capital needs of First REIT." James2312 ( Date: 30-Jul-2021 11:43) Posted: Sounds like a gamble rather than an investment. StarHub Limited - Removing Potential Disrupter at a Price Trader Hub: 4. CapitaLand China Trust (CLCT) is Singapore's first and largest China shopping mall real estate investment trust (REIT), with a portfolio of 11 income-producing shopping malls. The content here is for informational purposes only and should NOT be taken as legal, business, tax, or investment advice. You only lose 10% of your capital, and the 8% yield on the remainder will make up for the loss in 1 or 2 years. For example if you own 10 of such REITs – and 1 suffers complete capital loss. Elite Commercial REIT (Elite CREIT) is likely to launch IPO next week. Talk about a baptism by fire. Those crazy investor said reit can get passive income. Bridgewater International, a substantial unitholder of First REIT, disposed of 2.54 million of the REIT's units for S$2.64 million in a market transaction on 25 September, PT Lippo Karawaci said in a filing to SGX Monday. You have entered an incorrect email address! Please do a deep dive into lippo. But that’s what Financial Horse is here for right? Why must be reit I vested in US 2 year ago, and i am up 3.5X, Those who read me, give reit a miss, they are poor investment. Copyright © 2013 First REIT. Useful To Me Not Useful To Me: see2eye Member 14-Jan-2011 10:34 Find Out More. OUE and OUE Lippo Healthcare will be abstaining. Concise. They were forced into massively dilutive equity fund raisings, but after that the share prices soared once the immediate refinancing risk was gone. Find out more here. However, if you are still considering buying . THE dilutive rights issue proposed by the manager of First Reit last Monday to raise some S$158 million at a 50 per cent discount is a painful but necessary remedy to its persistent problems of tenant concentration and excessive rental support given by its master lessee Lippo Karawaci (LK). Frencken, IFAST & First Resources Among Most Consistent Gainers in 3Q21 SGX Market Updates: 3. ShareJunction is a FREE Singapore Stocks, Shares, Investment and Finance portal providing share, stock investors and traders forum, charts, news, email alerts, price quotes and market data for SGX shares. Would it be better to just wait and see if they do not default and but after that? So once the uncertainty is removed, so does the opportunity in the price. Yes. You get exposure to 20 of the largest S-REITs, and there is no minimum investment amount or minimum brokerage fees, which makes this a good option if you’re investing smaller amounts. ShareJunction is a FREE Singapore Stocks, Shares, Investment and Finance portal providing share, stock investors and traders forum, charts, news, email alerts, price quotes and market data for SGX shares. If the Lippo Group survives and emerges from COVID, all could be well again. The current saga has already illustrated that the Lippo group is facing financial and cash flow pressures, so any investment into First REIT needs to bear that in mind. AREIT debuted after it successfully completed its PHP13.6 billion initial public offering following the close of the offer period on August 3. First REIT Twisted The Knife Further Into The Heart Of All Unitholders- Nightmare of Nightmares Right Issues Announced At More Than 50% Discount Off Last Market Price. This implies a yield of 7.4 - 7.6% (with top-up) or 6.4 - 7.0% (without top up) in FY2020 and FY2021. From FR' s announcement on 19 Jun 2021. I’ve always viewed these kind of REITs (small cap with a weak sponsor) like Russian roulette. With the right position sizing and risk control, you can still make money with such investments. The principal investment objective of AA REIT is to deliver secure and stable distributions and provide long-term capital growth to Unitholders. He is a firm believer in Einstein’s quote – “If you can’t explain it to six-year-old, you don’t understand it yourself.”. Get Official Stock Quotes, Share Prices, Market Data & Many Other Investment Tools & Information From Singapore Exchange Ltd There are 3 big things that you need to understand about the First REIT saga: You would have thought that hospitals are recession-proof right? I am interested in first reit. User Password Auto-Login Enter Stock. More. First REIT’s hospitals are master leased to Lippo Karawaci, which runs the hospitals. It is NOT for investing (Buy / Sell) decision. The share price was at 41 cents before this, and doing a massive rights issue (almost 1 for 1) at such a low price would be massive dilutive for existing unitholders. These days the buy and hold strategy requires a lot of patience. This book advocates rewarding yourself right away with regular income from stock dividends and bond interest. Notify me of new posts by email. Notify me of follow-up comments by email. First REIT is a Singapore listed REIT that owns hospitals in Indonesia. First REIT. And if the refinancing isn’t successful? (China Evergrande Update), Retire Early with TESLA Stock? Something similar could happen here – if all goes according to plan, and Lippo Karawaci makes good on the new leases. Thanks. For those who are not vested, it’s a very interesting case study. Singapore Savings Bonds SSB August 2019 Issue Yields 2.01% for 10 Year and 1.68% for 1 Year. Found insideDrawing from his experience as a securities analyst, economist, and investor, the author explains the workings of Wall Street and offers advice on determining the value and potential of stocks FIRST REAL ESTATE INV TRUST (AW9U) SGD 0.255 +0.00% +0.00. As Singapore's first healthcare real estate investment trust, First REIT's investment strategy encompasses a diverse portfolio of yield-accretive healthcare and healthcare-related real-estate assets in Asia. First REIT ($426M) Sabana REIT ($474M) Lippo Malls Indonesia Retail Trust ($476M) All 5 REITs were also the Smallest Market Capitalisation REITs in the March-August 2021 update. And short term – there is real insolvency risk here. Soilbuild Business Space REIT is a Singapore real estate investment trust established with the principal investment strategy of investing on a long-term basis, directly or indirectly, in a portfolio of income-producing real estate used primarily for business space purposes in Singapore as well as real estate-related assets. , Ahh okay got it! Share price drops 40%+ over the next few days. NAV would plunge from 51.8 cents to 36 cents (from 99.6 cents last year), which gives you an idea of how dilutive this is. It’s sponsored by the Lippo group in Indonesia, which is owned by the Riady family. The rights issue will be on the basis of 98 rights units for every 100 units in First REIT held by a unitholder. $ billion. EC World Real Estate Investment Trust (EC World REIT) is a real estate investment trust. Found inside – Page 1093... in not indicate intent that company was to share junction was erroneous . ... affirming 8 N.Y.S.2d of the right for the first time in such court . This will be the first pure-play UK-focused REIT to list in Singapore Exchange. SPH REIT is established principally to invest in a portfolio of income-producing real estate. I later on dig deeply in my biz circle and received overwhelmingly negative fedback on Riady family, which taught me a big big lesson that u can’t just look at numbers to assess an emerging market counter, this is academic and naive. AIMS APAC REIT is a growing industrial real estate investment trust listed on the mainboard of the Singapore Exchange since April 2007. Over the past five years, its average PB ratio stood at around 1.2x. Unfortunately, this question requires a deep dive into Lippo Karawaci’s financials and business, which isn’t exactly that straightforward. Divs. Amazing recap. Financial Horse YouTube Channel Investment Moats SG Invest Bloggers The Finance SG Investment Lady Lady You Can Be Free SleepyDevil Turtle Investor Unintelligent Nerd ProButterfly Alpaca Investments Forever Financial Freedom My Sweet Retirement 15 Hour Work Week Bullythebear SG Young Investment The Babylonians Reality Inversion. Hopefully the deep dive is done by then. Because by that time the price would have gone up! ShareJunction is a FREE Singapore Stocks, Shares, Investment and Finance portal providing share, stock investors and traders forum, charts, news, email alerts, price quotes and market data for SGX shares. Sector / Industry / Sub-Industry: Real Estate / Equity Real Estate Investment Trusts (REITs) / Health Care REITs. First Reit: The real estate investment trust's fourth-quarter distribution per unit (DPU) stayed flat at 2.15 cents for the three months ended Dec 31, 2018, unchanged from a year ago. Or maybe you’re right, but as it turns out, hospitals are not pandemic-proof. First Real Estate Investment Trust (First REIT) is a Singapore-based healthcare real estate investment trust (REIT). Share price drops 20%, First REIT announces a massively dilutive rights issue at 98 rights units for 100 units (at $0.2 per unit). A journey through the Index Revolution from the man who started it all Stay the Course is the story the Vanguard Group as told by its founder, legendary investor John C. Bogle. NAV as at Dec 31, 2019 of 99.64 cents would fall to 51.75 cents on a pro forma basis before the rights issue. Lippo Karawaci is proposing to lower the master lease rents such that FY2019’s rents of $115.3 million would fall to $77.5 million on a pro forma basis, translating into NPI of $75 million compared to $112.9 million in FY2019. I've updated with a little bit more info from said article, indicated . Price to Book is 0.6x (although if this saga taught us anything, it is to take their valuations with a huge pinch of salt). And apparently, if the rent is not cut, Lippo Karawaci is just going to default under the lease, which takes away 72.1% of First REIT’s rental income, and breaches the debt covenants. If they don’t vote for the resolutions, the rights issue cannot proceed, and the REIT may face a financing default. FIRST REAL ESTATE INV TRUST (. Using the IPO price of US$0.80, the REIT is priced slightly above book with a PB ratio of 1.06. As a result of the decline, DPU before the rights issue would fall from 8.6 cents in FY2019 to 4.44 cents on a pro forma basis. The original master lease was split into 2 components: But COVID is bad for business right, so Lippo Karawaci cannot afford the rent anymore. As long as they can maintain their property, as much as possible pare down their debts to reduce their gearing, it is still worth to consider investing. And should i be holding on to it still? First REIT is also looking to do a rights issue as announced today. (Small – Mid Cap REITs) (2021). Let me see if I can share some quick thoughts this weekend. If they vote for the resolutions, they will get terribly diluted in both DPU and NAV, but the REIT lives to fight another day. Found insideAlthough we have been successful in our careers, they have not turned out quite as we expected. More You will need to make your own independent judgment regarding the analysis. SGX: AW9U. ) I think I missed it, would you buy it? It’s a weekly newsletter that goes out every Sunday, and rounds up the week’s posts so you never miss anything. If rights units are taken into account, NAV would be 35.95 cents. , What happens if First Reit does default on the loan payments. If you had a tight stop loss that cut losses after a 15% fall, you could even have walked away with a fair bit of your capital. I do want to verify the numbers if I were to invest. If you vote for it, there’s massive dilution from the equity fund raise, so prices will likely never recover to pre-COVID levels. The deep dive is a tough one because it’s so hard to find info on the Lippo group. The Lippo group isn’t the most straightforward to analyse because it can be quite obscure. Stock analysis research and articles on this site are for the purpose of information sharing and do not serve as recommendation of any transactions. No amount of looking into Lippo can really quantify the risk of the default. The REIT's portfolio comprises 20 properties consisting of 17 hospitals in Indonesia and South Korea and three nursing homes in Singapore. The key though, is really the creditworthiness of the counterparty – Lippo Karawaci. Will I SELL my China stocks? If the REIT survives, there could be upside. I would love to hear your thoughts though. If the EGM is not approved, or if the rights issue runs into difficulty, there could be real issues for First REIT. × Modal title. Thank you so much. First REIT may default on its $196 million loan due on 1 March 2021. First Real Estate Investment Trust. Home | First Reit. This book provides essential discussion of how the customs of corporate and real estate transactions differ and how conflicts involving letters ofintent and contingencies to the deal can be resolved. Difficult jargon simple to understand. The base lead is $1.6 million per annum. It’s gone from $1.00 in Jan, to $0.22 this week. Everything on Financial Horse is based on first-hand experience, as he does not believe in recommending products he will not consider investing in himself. Source of the report is credited at the end of article whenever reference is made. Yes, please deep dive into Lippo. Pertaining to the second resolution, First Reit, which is similarly facing financial difficulties, had proposed a 98-for-100 renounceable rights issue at S$0.20 per unit to raise gross proceeds of S$158.2 million. REIT. With the exception of Keppel REIT, the remaining 5 REITs had saw higher property income during the pandemic. now end up paying themselves income and pay other income too. Elite Commercial REIT is the first REIT listing in Singapore in 2020. The response, among others, was that “The Board of Directors are of the view that there is no material change to the carrying amounts of First REIT’s investment properties for 1H2020 necessary at this stage”, First REIT announces a drastic restructuring of the master lease agreements with Lippo Karawaci. Keppel DC REIT, the first data centre real estate investment trust listed in Asia, invests in a diversified portfolio of incoming-producing real estate assets used primarily for data centre purposes, as well as real estate and assets that support the digital economy. Share Price as of: 2021-09-27 17:16. Now that’s not to say they’re a bad investment. These valuation metrics indicate that Hampshire REIT's IPO price is at best fair. First REIT owns 11 Siloam Hospitals,1 integrated Siloam Hospitals Kupang & Lippo Plaza Kupang, 1 integrated Siloam Hospitals Manado & Hotel Aryaduta Manado and 1 Imperial Aryaduta Hotel & Country Club. My gut feel is that they would have restructured the leases such that the new numbers are sustainable long term, but this is one that I would prefer not to trust my gut. The Trust is focused on investing in healthcare and healthcare-related real-estate assets throughout Asia. If you thought things are bad… oh boy, they’re only just getting started. Despite going through one of the most trying times for REITs, these 6 REITs have managed to raise its dividends. Btw – My personal portfolio and stock watch are available on Patron for those who are keen. If the rights issue units are included, DPU falls to 2.59 cents on a pro forma basis. EGM to approve the restructuring and rights issue. Reminder that these yield numbers are based on current prices taking into account delayed distribution . (Singtel Case Study), Top 5 High Yield Dividend Stocks to Buy in Singapore (2021 – Blue Chips, no REITs), Sembcorp Marine Rights Issue Explained – Should investors subscribe for the Rights Issue? Don’t forget also to join our Telegram Channel! First REIT issues a profit guidance, warning that DPU will drop 40 – 50%. Post was not sent - check your email addresses! The Indonesian economy is under big pressure from COVID, and the Lippo group is unlikely to be spared. Sell China stocks? Here's the First REIT I Ever Bought and Why I Never Plan to Sell It. Syfe Select Review – Fully customisable Robo Portfolio? CapitaLand Integrated Commercial Trust CICT is the first and largest real estate investment trust REIT listed on Singapore Exchange Securities Trading Limited SGX-ST with a market capitalisation of S118 billion as at 28 October 2020. In fact, the content is not directed to any investor or potential investor and may not be used to evaluate or make any investment. Do you want me to do a deep dive into Lippo Karawaci and the Lippo group? ESR-REIT is committed to providing its Unitholders with a stable income stream, through the proactive management of its property portfolio and with the intention to deliver long-term capital growth. Notify me of follow-up comments by email. It was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) on 8 December 2006. The Lippo group are shareholders of OUE and OUE Lippo Healthcare which own First REIT’s manager and some 19.72% of units in First REIT. Without inside/on the ground info, incredibly tough to comment. China’s Evergrande Explained: Is this China’s Lehman moment? The market is efficient like that. ShareJunction is a FREE Singapore Stocks, Shares, Investment and Finance portal providing share, stock investors and traders forum, charts, news, email alerts, price quotes and market data for SGX shares. It's planning to issue around 98% of First REIT's outstanding units to raise gross proceeds of approximately S$158.2 million. Yes, please do a deep dive into Lippo. The new master leases are condition on unitholder approval though, so there is an EGM on 19 Jan to approve this. Because as it turns out, pandemics are really, really bad news for the hospital business. They also dropped a bombshell that the refinancing exercise is to avoid an imminent default of $196.6 million repayment obligation which matures on Mar 1, 2021. In case you missed it, this is the 1 year chart of First REIT. Hi Zac, understand where you’re coming from. I myself had a lot of fun piecing together the details. Trans. China Economy in Focus Ahead of Golden Week SGX Market Updates OCBC Share Price, NEW: CapitaLand Investment (SGX:9CI) CapitaLand Investment Share Price. Anns. Unfortunately, in this particular timeline, First REIT was the REIT that went bad. Found insideThe FMM Annual Report for 2018 highlights the concrete results achieved through the continued support of key resource partners. This report details initiatives, innovations, impacts, outcomes and human-centred stories from the field. Pardon me for my silly question as I’m new to investing. Refinancing risk was gone lot of patience sign up for our first reit sharejunction list its! 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Pay other income too ( SGX-ST ) on 8 December 2006 things are bad… oh boy, ’. Mobile organosilicon materials point about First REIT is a high risk REIT with high property and.
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