First REIT's property in Singapore, Pacific Healthcare nursing home in Bukit Merah (Photo: REITsWeek)

Yields on First REIT, as derived from historical dividends, have re-entered the 8% territory as concerns over the status of master leases with its sponsor begin to mount.

The Singapore-listed healthcare REIT currently owns a portfolio of 20 medical and nursing facilities across Indonesia, Singapore and South Korea.

A number of these properties, such as Siloam Hospitals Lippo Village and Siloam Hospitals Lippo Cikarang, are being rented out on master leases with the REIT’s sponsor, PT Lippo Karawaci.

Due to these master leases, First REIT has been enjoying a relatively long weighted average lease expiry (WALE) of 8.8 years as at 30 September 2018.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.