One of my favorite real estate investment trust First REIT purchased South Korea’s Sarang Hospital. The purchase price is US $13 million and this will be finance entirely by bank loan. This is not a problem for First REIT since its Debt to Asset is only 16%. Essentially this will not make quite a big difference. After all the total asset size of First REIT is  around SGD 565 mil. The great thing is that this deal is yield accretive as Sarang Hospital, which is suppose to be the largest rehabilitative and nursing facilities in Yeosu will yield 9%. First REIT’s current yield to value is around 7.7% while current Net Property Income should be around 8%. This will add USD 1.17 million to First REIT’s revenue. If we take debts at 3.5% interest rate, interest will come up to USD 0.455 million. Net Income is ......