Saturday, January 25, 2020

Added: FIRST REIT (Jan 2020)

Bought 24,000 shares of FIRST REIT on 23 Jan at $1.

Reasons for buying:
1) Upcoming Q4 dividend should have at least 2.15cents/share.
    This is a juicy 8.6% dividend yield based on buying price of $1. 
    Q4 result will be releasing on Wed 29 Jan.
2) P/B 1
    I am the kind of investor who do not like to pay any premium for any shares. So P/B 1 is kind of        my limit.
3) Quarterly dividend payment

Key risks:
1) Rights Issue 
I am quite surprise that since OUE became one of the sponsor since 2018, they have not 'dump' any of their asset to First Reit. 
If this really happen, then we might expect Rights Issue which shareholder must prepare for that to happen.  
2) Earliest lease expiry is in Aug 2021. 
Lease renewal is also one of the concern that cause the stock price to drop and maintain at such low price. 
In total, there are 5 expiry in 2021 and the next one in Dec 2025. 
There are rumour that the renewal will be unflavourable to First Reit such as it will be in IDR.
3) Reputation of both sponsors
Lippo is having their own financial issues and OUE is famous for dumping unflavourable terms to their REIT.

Related post:
1) SOLD: First REIT (Jan 2019) 
2) Added: First REIT (Jan 2019)
3) Added: FIRST REIT (Dec 2018)
4) Added: FIRST REIT (Aug 2018)

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