First REIT part II

Referring to my previous post titled: First REIT Oct 2013

OCBC research's take on First REIT below:
First REIT: Upgrade to BUY on valuation grounds

Summary: We visited five of First REIT’s (FREIT) properties (four hospitals and one hotel and country club) in Indonesia over a two-day period last week. The hospitals are operated by Siloam International Hospitals (subsidiary of Lippo Karawaci) and are generally well-maintained and equipped with modern medical equipment from international brands such as Siemens and Philips. Meanwhile, FREIT recently lowered its floating rate exposure from 72% to 46% of its total debt following a refinancing exercise. Its next refinancing need will only come in 2016. We believe that FREIT’s sharp share price correction has been overdone, as it has minimal exposure to the volatility in the IDR thanks to its lease structure. Hence we upgrade FREIT from Hold to BUY on valuation grounds, with an unchanged fair value estimate of S$1.20. FREIT also offers an attractive forecasted distribution yield of 7.6% in FY13 and 8.3% in FY14. (Wong Teck Ching Andy)


I have to agree with the above, based on valuation First REIT is quite attractive. In fact i really like their aggressive strategy in Indonesia plus they are doing a good service to the people by building more hospitals around the country. From an ethical standpoint, I like their business model. It is also going to give 7-8% returns looking forward into the near future. Obviously there are risks involved. Key risks would be volatility in the Indonesian Rupiah and rising interest rates for borrowing. Hmm... i wish had more money to invest, cannot really free up any cash from other investments just yet. 
Remember you can't just buy and sit on your investments, If it gets cheaper, buy another equal part or if it rises by 20%, sell half for profit and keep the rest. Key strategy is not to be greedy.