Shares & Derivatives
First REIT – Asset Swap with Parent Lippo
By Investment Moats  •  October 21, 2015
First Real Estate Investment Trust, a Indonesia centric healthcare trust with long lease announced this morning of an asset swap with their parent Lippo Karawaci. http://www.investmentmoats.com/DividendScreener/DividendScreener.php Announcement can be found here. The short story is that First REIT will be divesting a hospital at a 112% premium and a plot of land at 3.1% premium to their parent Lippo for development. Upon completion of development in 2019, First REIT will be purchased part of the new building at 12% discount of $90 million. Income will not be affected right up to the takeover of the new building. The master lease of the new building is 15 years. This will lengthen First REIT’s rental expiry and rejuvenate their portfolio. I do anticipate that when the time comes, there needs some debt financing to take over this asset. There will be no impact on current dividend yield ......
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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