REIT Reporting Period Part 2 - Healthcare REIT

Another stable set of results from both PLife REIT and First REIT.

PLife - 2016
Revenue grew 7.2% and net property income grew 6.7% with recurring DPU up by 2.8%. NAV of $1.72 and gearing at 36.3%. Next few quarters should continue to be stable with slight increase in DPU due to divestment gain of its 4 Japan properties and its rental reversion model.

Based on 2016 DPU of 12.12 cents, my yield at average cost of $2.32 stands at 5.2%. I am satisfied with the return and might add on when the price is right.

Full presentation by company here.

First REIT - 2016
Revenue grew 6.3% and net property income grew 6.6% with recurring DPU up by 2.0%. NAV of $1.00 and gearing at 31.1%. Dropped in gearing due to issue of S$60 million of subordinated perpetual securities in July 2016.

From 2010 onwards, First REIT has on average acquire 1 property from its sponsor per year. I believe this will continue as it has more headroom for debt with the reduce gearing and its sponsor has a pipeline of hospitals which the REIT has the right to first refusal.

With rental revision from 2020, that will be another boost of its DPU.

I bought First REIT using my CPF in 2007/2008 and have enjoyed the increase in its distribution for the past decade. Also, as I have reached my CPF limit for stock investing, I have participated in DRIP for First REIT to increase my holdings. Unless something drastic happens, I will continue to do this for the next decade.

Full presentation by company here.