Unveiling First REIT 2.0: Our New Growth Strategy
Portfolio
5
Positions First REIT Competitively to Peer
POSITIONING AGAINST S-REIT HEALTHCARE PEER
DPU Yield
Spread vs Blended Risk Free (1)
Blended Risk Free
FIRST REIT
FIRST REAL ESTATE INVESTMENT TRUST
S-REIT Peer
Valuation
Mkt Cap (S$mm)
Price/NAV
AUM
(S$mm)
Geographic
Breakdown
Land Tenure
Cost of Debt
2.73%
8.80%
4.34%
6.07%
8.90%
Standalone
Pro Forma
1H FY2021
1H FY2021
475
602
0.84x
940
ID: 96.4%
0.88x
1,242
ID: 72.9%
JP: 24.4%
4.02%)
4.56%
An Attractive
Investment Opportunity
ā Attractive entry valuation within
healthcare sector of 0.88x Pro Forma
P/NAV as at 30 June 2021
Pro Forma
Dec 2020
3,013
ā Attractive annualized 1H 2021 Pro
Forma DPU yield of 8.90% (6)
1.82x(2)
1,990
SG: 61.0%
JP: 38.7%
SG: 3.6%
SG: 2.7%
MY: 0.3%
85.4% Freehold / HGB
14.6% Leasehold / BOT (3)
88.9% Freehold / HGB
11.1% Leasehold / BOT (3)
35.5% Freehold
64.5% Leasehold / BOT (4)
4.2%
3.4%
0.53% (5)
High-quality portfolio of assets with
predominantly freehold / HGB land
Potential further capital structure
optimisation to reduce cost of debt
Source: Company Filings, Factset (as at 6 Dec 2021), Bloomberg (as at 6 Dec 2021)
(1)
(2)
(3)
22
Computed as DPU Yield over blended risk free spread. Blended risk free spread is computed based on the pro-rata asset contribution from Indonesia(72.3%, Rf: 6.24%), Singapore (2.7%, Rf: 1.68%) and Japan (25.0%, Rf: 0.00475%)
Based on reported Pro Forma financials of S-REIT Peer as at 31 December 2020 with effects of Proposed entry into New Master Lease Agreements for the Singapore Hospitals and Renewal Capex Agreement announced on 14 July 2021. Note that the Renewal Capex Works will take ~3 years
to complete.
Based on the Agreed Purchase Price of the Japan Nursing Homes as at 29 October 2021 and the Existing Portfolio as at 30 June 2021. Land tenure by value; the two types of property titles in Indonesia are Freehold / HGB; and Leasehold/Build, Operate and Transfer ("BOT"), which includes
Strata Title on BOT and Normal Title on BOT.
(4) Based on latest appraised value per investor presentation dated 3 November 2021
Based on effective all-in cost of debt per investor presentation dated 3 November 2021
455
(5)
(6)
Computed based on First REIT's closing price of $$0.295 as at 6 December 2021
FIRST 'I' REIT
ASIA'S PREMIER HEALTHCARE TRUSTView entire presentation