First REIT (FREIT) reported 1Q14 gross revenue of S$22.5m, which translates into a 28.3% YoY growth. Distributable amount to unitholders and DPU increased by 22.3% and 14.4% YoY to S$14.2m and 1.99 S cents, respectively. 1Q14 revenue and DPU formed 24.1% and 24.0% of our FY14 forecasts, respectively. We view this as in-line with our expectations. FREIT’s growth was driven largely by a full quarter of contribution from its two Indonesian hospitals, Siloam Hospitals Bali and Siloam Hospitals TB Simatupang, both of which were acquired in May 2013. FREIT will trade ex-dividend on 21 Apr 2014, and the DPU of 1.99 S cents is payable on 29 May 2014. Unitholders may choose to receive their distributions in the form of fully-paid new units in lieu of part only or the entire cash amount of any distributions they are entitled to. Looking ahead, FREIT has highlighted that the Indonesian healthcare market will remain its key focal point. We will provide more details after speaking with management. Maintain BUY and S$1.21 fair value estimate on FREIT.

Source: OCBC Research - 15 Apr 2014