18 Numbers That Will Help You Understand First Real Estate Investment Trust

First Real Estate Investment Trust (SGX: AW9U) is the first Singapore-listed REIT that has a focus on healthcare-related assets.

First REIT’s healthcare properties are mostly located in Indonesia. The REIT’s 2015 annual report has plenty of information about its business. Here are 18 key figures that can help investors understand First REIT:

  1. At the end of the 2015, First REIT had 17 properties. Of this, 13 properties were located in Indonesia, three were in Singapore and another one was in Korea. The properties in Indonesia are operated by PT Siloam International Hospitals Tbk, a subsidiary of PT Lippo Karawaci Tbk. PT Lippo Karawaci Tbk happens to also be First REIT’s sponsor. More importantly, the sponsor has a pipeline of 44 hospitals on which First REIT has the right of first refusal; the 44 hospitals could be potential future acquisition opportunities for the REIT.
  2. It might be worthwhile to look at the key unitholders of the REIT. As of 15 March 2016, PT Lippo Karawaci Tbk had a deemed interest of around 33% in First REIT. PT Sentra Dwimandiri had a deemed interest of around 22%. Meanwhile, Ronnie Tan Keh Poo had a deemed interest of around 1.5% in the REIT. Ronnie Tan is the chief executive of First REIT’s manager.
  3. PT Lippo Karawaci is also the main tenant for First REIT, accounting for 83.55% of the REIT’s rental income in 2015. There is more to the Lippo connection. In 2015, First REIT acquired its first integrated hospital and mall in Kupang. The adjoining mall will be managed by PT Malls Indonesia. In February 2016, First REIT also did its first joint acquisition with Lippo Malls Indonesia Retail Trust (SGX: D5IU) for an integrated healthcare and retail development in Yogyakarta.
  4. From 2007 to 2015, First REIT has grown its revenue, net property income, and distributable income by 17.3% per year17.2% per year, and 15.7% per year, respectively. But, the distribution per unit growth is tepid in comparison. First REIT’s DPU in 2007 was 7.09 cents while its DPU in 2015 was 8.30 cents.
  5. First REIT noted that the Indonesian healthcare market has continued to flourish despite the slowdown in economic growth in the country. The Indonesian government has committed to set aside between 1% and 2% of its annual budget to support “Jaminan Kesehatan Nasional,” a national health insurance scheme.
  6. First REIT also shared research estimates that the annual healthcare expenditure in Indonesia is expected to increase at an average of 10% annually until 2017 where it will hit US$25 billion.

All the data above gives investors a sense of First REIT’s business. To learn more, take a look at its annual report.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.