On 15 Jul, First REIT delivered another pretty good quarterly results. DPU is at 2c, the highest ever. There are many reasons to believe that even higher CPU can be expected in future.
The management has handed in a nice P/L sheet: strong growth in gross revenue and NPI, They have also done a good job in managing its balance sheet. All debt is on fixed-rate and no refinancing needs until 2017, making it insulate to rising interest environment.
Besides, its rental are in SGD and USD, making it insulate to IND volatility. What's more, its Indonesian properties have built-in rental escalation indexed by Singapore Inflation, although capped at 2%, which is low comparing to current CPI in Singapore.
With all above points in mind, the counter is almost like an inflation-indexed bond dominated in SGD, except that it has growing potential by new acquisitions and planned AEIs. So, it is like growing ......