The analyst likes its senior-focused nursing homes in Japan, which are supported by the ageing population. Additionally, as First REIT’s nursing homes are in prefectural capitals, they do not face direct competition from the large Japan REIT counterparts in metropolitan areas.
Maybank Securities analyst Li Jialin has initiated “buy” on First REIT with a target price of 28 cents, highlighting the trust’s favourable growth prospects.
With assets in Indonesia, Japan and Singapore, First REIT has come a long way since restructuring its master lease agreement by adding investments in nursing homes and its geographic exposure, says Li.
