Yesterday evening, First REIT announced a restructuring proposal with their master leasor Lippo Karawaci. This proposal would still have to be approved by unit holders during an extra general meeting. I am just going to do a short note here. First REIT generally masters lease a portfolio of hospitals bought from parent Lippo Karawaci… back to Lippo Karawaci. The lease tenure is rather long at 15 years. The first set of hospital lease was during the IPO in 2006 (the lease term is almost up for the first batch). The actual operator of the hospital is PT Siloam International Hospitals. PT Siloam do not pay the rent to First REIT. Instead, Lippo Karawaci pays the rent to First REIT. PT Siloam does pay rental expense to Lippo Karawaci but the rent in the past years have not equate to the amount Lippo Karawaci paid First REIT (there in lies the problem)...