First REIT poised to continue expanding portfolio with 43 hospitals for potential acquisition

Its earnings grew by 6.8% to $53.1m.

The real estate investment trust recorded strong results in 2Q16, as growth was driven largely by contributions from Siloam Hospitals Kupang & Lippo Plaza Kupang, which were acquired in Dec 2015.

According to a report by OCBC, for 1H16, FREIT’s gross revenue jumped 6.8% to S$53.1m and formed 51.5% of our full-year forecast.

“This leaves management with ample debt headroom of ~S$130.7m to fund acquisitions before it reaches a gearing ratio of 40%, based on our estimates,” the report noted.

“FREIT’s sponsor, PT Lippo Karawaci Tbk, has a current strong pipeline of 43 hospitals for potential acquisition and is continuously expanding its healthcare portfolio,” the report added.