Shares & Derivatives
First REIT: DPU to increase!
By A Singaporean Stockmarket Investor (ASSI)  •  March 27, 2013
First REIT is going to acquire two new hospitals in Indonesia for $190.4 m. 1. Siloam Hospitals Bali. Purchase price: $97.3 m. Annual base rent: $9.7m. Financed by a drawdown of committed debt facility. 2. Siloam Hospitals TB Simatupang (South Jakarta). Purchase price: $93.1 m. Annual base rent: $9.3m. Financed by a combination of a drawdown of committed debt facility and issuance of new units to the REIT's sponsor.
For anyone investing for income, an important question is how would these actions affect the DPU? Well, even with the issuance of new units to the REIT's sponsor, unitholders will still enjoy a 5.47% increase in DPU on a per annum basis. The estimated full year DPU including these acquisitions is 6.94c. Mr. Market certainly likes the news as the REIT's unit price rose 3.5c to close at $1.23 per unit. At this price, the projected distribution yield is ......
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By A Singaporean Stockmarket Investor (ASSI)
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