First REIT - First REIT started at Buy by OCBC; $0.84 fair value

Stock Name: First REIT
Company Name: FIRST REAL ESTATE INV TRUST
Research House: OCBC

OCBC initiates coverage on First REIT (AW9U.SG) with a Buy recommendation and $0.84 fair value estimate.



The research house says FREIT "is well-positioned to capitalise on the growing demand for higher quality healthcare from the middle-class in Indonesia as well as increasing eldercare needs in Singapore."



OCBC notes FREIT has completed acquisitions of two Indonesian hospitals recently "which we view as yield-accretive in nature."

It adds, FREIT would benefit largely from the support of its "strong and committed" sponsor PT Lippo Karawaci -- Indonesia's largest listed property company.



The house also likes the management's strong execution capabilities and FREIT's attractive distribution yield, "which is well above the S-REIT average."



OCBC's $0.84 fair value yields potential upside of 13.7% and total return of 22.6%.



FREIT is flat at $0.74.