First REIT is the first healthcare REIT to be listed in Singapore. It has done very well since IPO, beating both the blue chips as well as majority of the REITs in the past 13 years. There’re a lot to like about hospital as a business. First, it is a necessity for any modern society to function. Second, an aging population would need it even more. Third, rising healthcare costs mean higher revenue for the hospitals. Lastly, healthcare REITs tend to have long lease commitment and tenants basically don’t move out at all. Hence it was surprising when I heard the news that First REIT tanked 11% prior to its trading halt. The drop was attributed to a press release by PT Lippo Karawaci (IDX:LPKR). It said that Lippo Karawaci was to start discussions to restructure its leases with First REIT as the rents were unsustainable given that some

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