OVERVIEW:
The REIT counter invests in assets primarily used for healthcare and healthcare-related purposes. There are 17 properties in its portfolio. 13 in Indonesia, 3 in Singapore and 1 in South Korea.
HIGHLIGHTS:
[1] Latest quarter saw net property income and distribution per unit up 6% and 2% year on year. Similar increment was registered for past 9 months as well. The increment was due to newly acquired property on Dec 2015
[2] Management announced decision to acquire new property in Indonesia on early November. The acquisition will be funded by committed debt facility and internal cash.
[3] Total liabilities/Total asset ~36%. Interest coverage > 6. No debt to be repaid in one year.
INVESTMENT THEMES:
[1] Distribution per unit: 0.0212 (last quarter)
[2] Indonesia registered annual GDP growth rate 5% (SG:1.1%) for first three quarters this year. With improving economy and growing ageing population, management foresee healthcare sector to maintain its growth momentum in Indonesia.
[3] Newly announced acquisition offers potential earning upside.
PRICE TREND:
Similar to its peers, the counter has been falling in price recently. Current price is around middle range over past two years. Dividend yield is ~ 6.5%.
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