Thursday, May 21, 2020

First REIT AGM 2020

Attended First REIT AGM on 20 May via webcast.
This is also my first AGM via webcast.

1) Not much additional information was been shared
The AGM lasted only around 37 mins.
Majority of the information shared can be found in one of their previous presentation slide.

The good thing is shareholders' questions are been consolidated into PDF and sent out on 19 May (1 day before the AGM).

2) "We are doing GOOD"
The key message I got from Mr Victor Tan (CEO) during the AGM session is 'We are doing Good'.

To me, Good = Result is better than last year or at least maintain the same.

Else, for their case, I feel he should say "We need some improvement".
The only GOOD is their DPU, which maintain at 8.6cents.

I shall let the below AGM slides to do some justification.

3) Top key concern of shareholder 

One of the top key concern of shareholders is the renewal of 5 properties that is going to expire late 2021.
This 5 properties represent 22% of the lease profile.

There are a few rumors like the renewal based rental will be peg to IDR instead of SGD and etc.

Hoping to get more clarity in the AGM but unfortunately, the reply from CEO is they are still engaging the discussion with stakeholders and the discussion is currently on hold due to COVID.

There is definitely risk involved for First REIT shareholders.
But giving today price at $0.82, most of the risk have been priced in.
Shareholders will need to ensure they have sufficient cash on hand if First REIT were to have rights to onboard more properties from both their parents company.

Related post:
1) MM2 AGM 2019  
2) Perennial AGM 2019
3) Added: FIRST REIT (Jan 2020) again
4) Added: FIRST REIT (Jan 2020)
5) SOLD: First REIT (Jan 2019) 
6) Added: First REIT (Jan 2019)
7) Added: FIRST REIT (Dec 2018)
8) Added: FIRST REIT (Aug 2018)


  1. Hello. What are your thoughts on First REIT after the announcement today regarding the restructured subsidies and the 20% drop that follows immediately?

    1. Hi Ken

      Lippo threw a big bad news to his child which even the child is unknown about this (

      This increased the risks from the original 5 soon to expiring properties (22%) to all the 20 properties.

      As a small fry shareholders, we can only rely on Legal laws and the other parents OUE to fight for our interests and rights.

  2. Are you going to hold? You think you will cut the loss and ride the rally with other counter? So frustrating to see a counter you are vested in being a loser in the midst of all the rally.

    1. Hi Ken

      At this moment, i do not have the thoughts to sell. I am actually looking to average down more if the price were to fall :)

      I believe this is kind of risks norm if you choose stocks that located in IN / ID.