, Singapore

Here is what's in store for Singapore's healthcare REITs in 2H13

New acquisitions will boost DPU.

According to OCBC, within the healthcare REITs space, both First REIT (FREIT) and Parkway Life REIT (PLREIT) recently reported 2Q13 results which were in-line with market expectations. 

Looking ahead, they expect 2H13 DPU to be boosted by new acquisitions. FREIT completed the purchase of two Indonesian hospitals from its sponsor Lippo Karawaci on 22 May this year, with an initial NPI yield of ~9.9%.

Here's more from OCBC:

A full quarter of contribution will kick in from 3Q13. For PLREIT, it completed the acquisition of two nursing homes in Japan on 12 Jul 2013, with the assets expected to generate an initial NPI yield of ~7.1%.

Organically, PLREIT will also be able to obtain a higher rental increase of 4.44% (effective 23 August 2013 to 22 August 2014) for its Singapore hospitals, which is based on a CPI + 1% lease formula 

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.


The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.


So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.