Elevator Pitch
Singapore-listed Indonesian healthcare REIT, First Real Estate Investment Trust (FESNF) [FIRT:SP] or First REIT, currently trades at 1.0 times P/B, which represents a discount to its historical 10-year average P/B of approximately 1.2 times. The REIT also offers a trailing distribution yield of 8.4% versus its historical 10-year average distribution yield of approximately 7%.
While First REIT's valuation is attractive, the expiry of master leases for its four hospitals and one hotel & country club accounting for 22% of its properties in terms of Gross Floor Area or GFA is a key risk