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Saturday, January 22, 2011

First Reit Q4 2010 Quarterly Earnings Report

First Reit Q4 2010 Quarterly Earnings Report:
Key Points
  • Number of units in issue has more than doubled to 622,195,888 with the listing of the new rights units on 31 December 2010.
  • Adjusted DPU (excluding the new rights units issued on 31 December 2010) is 1.96 cents, up 2%.
  • Including the new rights units, First REIT’s total number of units in issue has more than doubled to 622,195,888, resulting in a DPU of 0.87 cents in 4Q 2010.
  • Newly acquired MRCCC and SHLC expected to raise distributable income by 89% to S$40.3 million in Projection Year 2011.
  • Market capitalisation almost doubled to S$438.6 million as at 31 December 2010, from S$224.5 million a year ago.
  • The Books will close from 5pm on 31 January 2011 for the purpose of determining Unitholders’ entitlement to the distribution. 
  • The distribution will be paid on 28 February 2011.
  • The ex-dividend date will be on 27 January 2011 at 9.00am.
  • Net asset value per unit at 77.00¢as at 31 Dec 2010 (based on enlarged share base a result of rights issue).
  • Projected gearing of 17.25% for the year 2011.
Author's Note
The quarterly DPU of 0.87 cents will be paid on 28 Feb 2011. Book closure is on 27 Jan 2011.

The DPU was 1.94 cents in the previous quarter.

Note that the DPU for the reporting quarter is significantly lower than the previous quarter because of the rights issue exercise that more than double the number of units in issue. The acquistion of the 2 new Jakarta hospitals were only completed at the end of the quarter on 31 Dec 2010, thus their earnings have not really contributed to the DPU for the reporting quarter. The DPU is expected to return to around the pre rights issue period for the next quarterly distribution when earnings from the 2 new hospitals kick in.

Following is the projection of the DPU for 2011 from the presentation slides:
  • Projected distribution per unit (DPU) stands at 6.4 cents
  • Projected distribution yield for 2011 at 9.14%, based on a theoretical ex-rights price of S$0.70 (as per the Circular to unitholdersdated 10 November 2010)
  • Based on the projected DPU of 6.4 cents and the closing price of S$0.765 as at 19 January 2011, the yield is 8.37%.
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