Featured Articles

Featured Articles
Ever wonder how to start using CPF to buy shares? Do visit Using CPF to buy shares (CPF Investment Scheme CPFIS-OA)

Advertisement

Directory

All about REIT Introduces concepts and terminologies about REIT.

About a Reit Talks about a particular REIT. Includes latest or historical performance, its business, and more.

Books and Thoughts About investment books and thoughts after reading.

REIT Financial News Latest financial news related to REIT

Commentary Commentary about news or trends affecting the REITs, or about the Market in general.

General Investment Tips, guide or thoughts about investment in general.

Thursday, November 11, 2010

First Reit - Follow up details of the proposed acquisition and rights issue - 10 NOV 2010

Follow up details of the proposed acquisition and rights issue:
Key Points
  • Distribution in projection year 2011 is expected to rise from 8.57% to 9.14% following the acquisition of two new healthcare properties in Indonesia.
  • This is based on a forecast annualised DPU of 6.40 Singapore cents for the full financial year ending 31 December 2011, in relation to its enlarged portfolio and financing through a combination of the underwritten renounceable rights issue of 345,664,382 new Units at an issue price of S$0.50 per Rights Unit and bank loan.
  • Upon completion of the Acquisitions, First REIT’s aggregate leverage will also be lowered from 18.60% to 17.25% for the Projection Year 2011.
  • On completion of the Acquisitions, the conditional master lease agreements entered into with Lippo in relation to the Properties will commence for a 15 year lease term.
  • Rental income of both Properties comprise a base rent component which is payable quarterly in advance, and subject to a stepped up increase every year thereafter at a rate equal to 2 times of the percentage increase of Singapore’s Consumer Price Index for the preceding calendar year; as well as a variable rent component. 
Related Posts


No comments:

Post a Comment

Blog Archive