Good stocks to invest – First REIT – Asset Swap with Parent Lippo



Good stocks to invest –

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First Real Estate Investment Trust, a Indonesia centric healthcare trust with long lease announced this morning of an asset swap with their parent Lippo Karawaci. http://www.investmentmoats.com/DividendScreener/DividendScreener.php

Announcement can be found here.

The short story is that First REIT will be divesting a hospital at a 112% premium and a plot of land at 3.1% premium to their parent Lippo for development. Upon completion of development in 2019, First REIT will be purchased part of the new building at 12% discount of $90 million.

Income will not be affected right up to the takeover of the new building.


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The master lease of the new building is 15 years. This will lengthen First REIT’s rental expiry and rejuvenate their portfolio.

I do anticipate that when the time comes, there needs some debt financing to take over this asset. There will be no impact on current dividend yield of 6.2%

First REIT, as well as other Singapore dividend stocks are featured on my Dividend Stock Tracker.

– Good stocks to invest

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