First REIT listed on the SGX on 11 December 2006 as the first healthcare REIT in Singapore. It owns hospitals, nursing homes, and rehabilitation centres located in Indonesia, Singapore, and South Korea. As at 31 March 2018, First REIT’s portfolio is valued at S$1.35 billion. In this article, I’ll bring an overview of First REIT’s performance since its IPO and its growth prospects for the near future.
Here are 12 things that you need to know about First REIT before you invest.
1. Indonesia has been a key income contributor and growth driver for First REIT. In 2006, First REIT was listed with a seed portfolio comprising four hospitals in Indonesia. By 2017, this had expanded to 16 hospitals and healthcare assets. These assets are leased on a triple-net lease arrangement where tenants are responsible for operating costs such as maintenance, certain taxes, and insurance. Rental income …