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This REIT is awaiting accretive acquisitions

PC Lee
PC Lee4/19/2017 11:35 AM GMT+08  • 2 min read
This REIT is awaiting accretive acquisitions
SINGAPORE (April 19): OCBC says a price of $1.25 and below would be a more favourable entry point for investors of First REIT as it awaits management to pursue accretive acquisitions during the remainder of the year, supported by its healthy gearing ratio
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SINGAPORE (April 19): OCBC says a price of $1.25 and below would be a more favourable entry point for investors of First REIT as it awaits management to pursue accretive acquisitions during the remainder of the year, supported by its healthy gearing ratio of 30.8% as at March 31 2017.

In OCBC’s view, potential size of acquisitions for 2017 may amount to $100-$150 million, in our view.

“Based on our calculations, FREIT has debt headroom of $86.3 million and $205.2 million before reaching gearing levels of 35% and 40%, respectively,” says analyst Andy Wong in a Wednesday report.

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