First REIT is Singapore’s first healthcare real estate investment trust.
Listed on the SGX on 11 December 2006, it aims to create a diverse portfolio of yield-accretive healthcare and healthcare-related real-estate assets in Asia.
They are sponsored by PT Lippo Karawaci Tbk, which is Indonesia’s largest broad-based listed property company and it mainly operates Siloam Hospitals Group, Indonesia’s most progressive and innovative healthcare provider which has achieved international standards.
Here are some snippets of their financial highlights.
Their AUM has been growing exponentially for the past 5 years, with an average CAGR of 16.4%
Their market cap for the past 10 years have been increasing at an average CAGR of 19.2%
And most importantly, their DPU has been consistently growing almost every quarter
On the 19th of April, our team members attended their 10th AGM at the Mandarin Orchard and we were impressed with how much Dr. Ronnie Tan, the CEO of First REIT, knows his stuff.
Here are the 5 important things we’ve learned during the AGM.
- If you’ve invested in them since the beginning (during their IPO), you would have achieved an average return of 21% per year!
- They are replacing the existing Siloam Hospital in Surabaya to one that is 3 times bigger, which is expected to complete in year 2020.
- First REIT’s sponsor, Lippo Karawaci, owns 25 hospitals, 12 of which are already acquired by First REIT.
- They have yet to acquire a hospital that does not belong to Lippo Kawaraci, as most of the other hospitals do not meet their acquisition requirements.
- They will continue to grow by acquring hospitals and they aim to acquire 3 of them this year, which are in Buton, Bogor and Yogyakarta.
In summary, our team feels that Dr. Ronnie Tan is very knowledgeable and well-versed about his own industry. He was able to answer any sort of question, be it about the geo-political situation in Indonesia or about the hospitals’ land leasing. As for the business itself, we felt that it is in a solid position, being the market leader in Indonesia.
Our team with First REIT CEO, Dr. Ronnie Tan
Disclaimer: All facts and opinions presented are for educational purposes only. This is not a recommendation to buy or to sell. The author(s) involved in the writing of this piece has current vested interest in the company. Please consult a competent professional for expert financial or other assistance or legal advice.