Bought into First Reit again after recent low. The selling happened because of the depreciating Indonesia rupiah and the recent financial trouble in their sponsor Lippo Karawaci, which could probably liquidate some of their assets to free up cash.

However the track record of the reit is here to see. With a built-in annual rental escalation clauses in their assets, this helps to mitigate the rising interest. Furthermore, rental income derived from Indonesia is pegged to the Singapore dollar, this mitigates the forex risk. The year on year increase in DPU and distribution help cushion my income portfolio by providing consistent dividends.

At $1.28 a share, the estimated annual DPU of 8.57c (based on 2017) provides a 6.7% yield for an equity in healthcare sector. P/B is slightly high though at 1.26 as compared to 10 years P/B average. It is closer to 5 year P/B average of 1.25.

My view is that this provides a good level of support and good dividend to hold.