This provides First REIT with strong cash flow visibility, while built-in rental escalation clauses in its well-structured master leases provide potential for rental growth and upside sharing with tenants, in the analyst’s view.
OCBC Investment Research (OIR) analyst Ada Lim has maintained her “buy” call on First REIT with an unchanged target price of 28 cents following the release of the healthcare REIT’s 1HFY2024 results ended June 30.
In her July 26 report, the analyst notes the REIT’s relatively long weighted average lease expiry (WALE) of 11 years, as at June 30.
