Summary: First REIT (FREIT) reported a 48.2% YoY increase in gross revenue to S$22.8m and a 14.5% growth in DPU to 1.97 S cents in 4Q13. This culminated in FY13 gross revenue and DPU growth of 44.5% and 14.3% (excluding exceptional gains distribution of 0.68 S cents in FY12) to S$83.3m and 7.52 S cents (FY13 distribution yield of 7.2%), and closely matched our revenue and DPU forecast of S$83.2m and 7.54 S cents, respectively. This growth was driven by contribution from new acquisitions (two hospitals acquired each in Nov 2012 and May 2013) and organic growth. Geographically, Indonesia, Singapore, and South Korea contributed 93.4%, 4.2% and 2.4% of its total revenue in FY13, respectively. We will provide more details after the analyst briefing. We maintain our BUY rating but our S$1.18 fair value estimate is under review.

Source: OCBC Research - 20 Jan 2014