*Official* First REIT (SGX: AW9U)

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fIgHtErKiD

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Junechua said:
First Reit firstly has been much misunderstood.

Their earnings are not in IDR but in SGD.

Their stock trades in SGD.

Their earnings are very strong and they are supported by their very own sponsor.

The only ‘fears’ so far I have seen that analyst echo one another is the fact that one of their lease is soon due for renewal in 2021.

In pandemics like this one, the demand for quality healthcare is higher than ever. I am holding to this gem and seek to invest further should the opportunity arise.

Good luck and cheers to all investors
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0.5 now.. echoing your view :)
 
twosix

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DukeCS33 said:
Basically it's sponsor risk. Assets in Indonesia are earning IDR but there is a peg maintained agst SGD to shield investors from idr volatility. This is a form of financial engineering and investors would need to know that they are taking on Indonesia risk. Anyone who has been through 97 knows that Indon risk carries a high risk premium. So you need to understand the key risk before you get in.
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If IDR crash, then jialat...
 
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cadvin

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twosix said:
10%+ forex change but the stocks has dropped 50%.
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Well the REIT borrow in SGD but the assets are in IDR so essentially it is a leveraged bet on IDR... So the FX effect on NAV will be increased by this leverage.

But probably other things are coming into picture ro explain the price drop, overall REIT market collapse, distrust of the sponsor and concerns about what might happen when the master lease come up from renewal.
 
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wilhal18

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cadvin said:
Well the REIT borrow in SGD but the assets are in IDR so essentially it is a leveraged bet on IDR... So the FX effect on NAV will be increased by this leverage.

But probably other things are coming into picture ro explain the price drop, overall REIT market collapse, distrust of the sponsor and concerns about what might happen when the master lease come up from renewal.
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iif there is one thing about this reits, yes i dont really trust the sponsor. i heard they like to do a lot of financial engineering and ****. sigh, my money rot in hell because of this.
 
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DukeCS33

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Look through the history of this thread and understand the reason why this stock dropped from $1.30 to $1 and then to $0.50 yesterday. Those who went in at $1 thought that it was cheap and dividend yield was high but could it plug the loss due to a 50% plunge in share price? I see the same type of retail investor mentality happening here just like with Eagle Hospitality Reits.

Do you understand the risk and is the risk acceptable to you in the current environment? Anyone who has gone through 97 crisis would not take FX and Indon risk lightly.
 
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wilhal18

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terence2112 said:
This reit DPU has been stagnant for the past few quarters.
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at least it doesnt drop like starhill or suntec (these 2 are quite famous). what i wanna say is sometimes we think singapore reits is good and indo or foreign reits is junk. well, first reits has been consistently paying stable dividends for years

but not so with some singapore reits like suntec or starhill. if you ask me, i would rather own first reits compared to overrated starhill reits.
 
satayxp

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DukeCS33 said:
Look through the history of this thread and understand the reason why this stock dropped from $1.30 to $1 and then to $0.50 yesterday. Those who went in at $1 thought that it was cheap and dividend yield was high but could it plug the loss due to a 50% plunge in share price? I see the same type of retail investor mentality happening here just like with Eagle Hospitality Reits.

Do you understand the risk and is the risk acceptable to you in the current environment? Anyone who has gone through 97 crisis would not take FX and Indon risk lightly.
Click to expand...

yes, fx risk in this case rupiah/usd leading to valuation collapse
 
twosix

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DukeCS33 said:
Look through the history of this thread and understand the reason why this stock dropped from $1.30 to $1 and then to $0.50 yesterday. Those who went in at $1 thought that it was cheap and dividend yield was high but could it plug the loss due to a 50% plunge in share price? I see the same type of retail investor mentality happening here just like with Eagle Hospitality Reits.

Do you understand the risk and is the risk acceptable to you in the current environment? Anyone who has gone through 97 crisis would not take FX and Indon risk lightly.
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For those who can hold long, 50c is a good deal. Ive owned this stock for a long time and have not sold even 1 share. The dpu I’ve collected already paid for the costs to buy the shares. I’m an investor, I buy and long. IDR will probably drop more when their situation exploded. I believe if their business model is sound, 10 years later this stock will be a winner again.

This is my opinion. Buy at your own risks. Haha.
 
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mycashewhouse

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Only time will tell if u r right

wilhal18 said:
at least it doesnt drop like starhill or suntec (these 2 are quite famous). what i wanna say is sometimes we think singapore reits is good and indo or foreign reits is junk. well, first reits has been consistently paying stable dividends for years

but not so with some singapore reits like suntec or starhill. if you ask me, i would rather own first reits compared to overrated starhill reits.
Click to expand...
 
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wilhal18

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twosix said:
For those who can hold long, 50c is a good deal. Ive owned this stock for a long time and have not sold even 1 share. The dpu I’ve collected already paid for the costs to buy the shares. I’m an investor, I buy and long. IDR will probably drop more when their situation exploded. I believe if their business model is sound, 10 years later this stock will be a winner again.

This is my opinion. Buy at your own risks. Haha.
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i fully agree with your assessment. i truly like first reits business model. yes there was problem last year with the sponsor. but i have to admit, the hospital business has been great. healthcare in indonesia has tremendous prospects.

we are getting 50 cents (ipo price) but first reits already has 3x more assets than 14 years ago.
 
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