Broker Name: Phillip Securities Research (Singapore)
Date of Report: 6 April 2026
Excerpt from Phillip Securities Research report.
Report Summary
- Stock: First REIT (Bloomberg Code: FIRT SP)
- Action: ACCUMULATE (Maintained)
- Target Price: S\$0.25 (previously S\$0.29)
- Key Idea: First REIT is proposing to divest eight hospitals and three non-hospital assets in Indonesia for S\$471.5mn, with a separate put option for the remaining six hospitals at S\$294.8mn. This two-tranche divestment is aimed at prioritising DPU stability and recycling capital from non-core assets and properties with rental arrears.
- Implications: The REIT will become cash-rich post-divestments, but DPU is expected to decline to ~1.7 cents if the first tranche completes in Aug 2026. The c.S\$9.7mn premium over appraised value will be distributed as special dividends. Net proceeds will largely be used to pare down debt, resulting in lower leverage. The strategic review for new acquisitions is ongoing, with a focus on developed markets.
- Forecast Dividend per Unit (DPU): FY26e DPU maintained at 2.27 cents (may decline post-divestment).
above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Securities Research can be the first to access the full report from the Phillip Securities Research website: https://www.poems.com.sg
