Stock Name: First REIT
Company Name: FIRST REAL ESTATE INV TRUST
OCBC has raised its estimates for First REIT after it bought its first hospital in South Korea for about $13 million ($16 million). The brokerage said it expects the net property income yield of the hospital to be about 9%, higher than its estimated distribution yield of 7.7% for 2011.
“We also like the fact that First REIT's first venture into Korea would provide a means of diversifying its revenue stream as current assets comprise three nursing homes in Singapore and six properties in Indonesia,” said OCBC in a report.
Company Name: FIRST REAL ESTATE INV TRUST
| Research House: OCBC | Price Call: BUY | Target Price: 0.835 |
OCBC Investment Research has raised its target price for First Real Estate Investment Trust (FRET.SI) to $0.835 from $0.80 and kept its buy rating.
OCBC has raised its estimates for First REIT after it bought its first hospital in South Korea for about $13 million ($16 million). The brokerage said it expects the net property income yield of the hospital to be about 9%, higher than its estimated distribution yield of 7.7% for 2011.
“We also like the fact that First REIT's first venture into Korea would provide a means of diversifying its revenue stream as current assets comprise three nursing homes in Singapore and six properties in Indonesia,” said OCBC in a report.
The brokerage said it expects First REIT to capitalise on the favourable interest rate environment and seek more yield-accretive assets in the near term.
At 9:02 a.m., shares of First REIT were 0.6% higher at $0.81, and have gained about 15% since the start of the year.
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