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At 6.5%, FIRT trades at a higher yield and lower P/B than fellow healthcare REIT Parkway Life. Its lower gearing of 30% also allows it ample firepower for further acquisitions from its sponsor.
Our risk free rate maintains at 3.1% as we think that allows ample buffer even with current rising interest rates. We maintain our ACCUMULATE call for First REIT with an unchanged DDM-derived target price of S$1.32.
First REIT Historical Dividend Yield and Price/NAV
Peer Comparison Table