Rental reversions will be zero this year.
Healthcare-focussed First REIT will rely solely on acquisitions to drive growth this year, according to a report by KGI Fraser.
The report noted that the REIT is likely to see zero rental reversions in 2016 on the back of weak Singapore CPI growth.
Its Kupang property acquisition is also expected to drive growth this year. First REIT is also expected to receive increasing income from progressive payments for the Siloam Hospitals asset swap initiative.
“We see upside catalysts if First REIT undertakes further acquisitions which boosts DPU further. Nevertheless, we are wary if First REIT continues to acquire properties not owned by its sponsor,” said the report.
Do you know more about this story? Contact us anonymously through this link.