First REIT Trades Equity for 12 Japanese Nursing Homes

News about First REIT

First REIT is trying to put its painful restructuring behind with a new growth strategy, and is announcing the acquisition of 12 nursing homes in Japan from its sponsor OUE Lippo Healthcare. The price of JPY 24,213 million will be paid with the issuance of S$131.5 million in new units of First REIT (at a price of S$0.305), along with S$15.8mm paid in cash and S$16.2mm of intercompany balances being taken over.

The purchased portfolio, totaling 1,451 rooms, is fully freehold and comes with 100% committed occupancy and a long WALE of 22 years. The manager expects the transaction to be DPU accretive.

First REIT
Price0.295 SGD
NAV0.351 SGD
Yield (4 quarters)9.46%
Gearing34.7%