First Real Estate Investment (AW9U) AI Stock Analysis

• Market Cap: S$580.52M
• Dividend Yield: 8.11%
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.46
• Revenue Growth: -11.43%
• EPS Growth: -39.27%
• Country: SG
• Employees: 23
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): N/A
• Shares Outstanding: 2,110,969,500
• 10 Day Avg. Volume: 1,171,930
• 30 Day Avg. Volume: 2,057,720
• PEG Ratio: -0.33
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 5.20
• P/FCF Ratio: 8.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.03
• Revenue Forecast (FY): S$129.35M

• Rating: 69 Neutral
• Price Target: S$0.50 ▲(78.57% Upside)

The overall stock score is driven by strong financial performance and an attractive dividend yield, which are offset by declining revenue growth and modest return on equity. Technical indicators suggest a stable trend with potential overbought conditions, while the valuation remains reasonable.

Positive Factors

Profitability

Strong profitability with high margins indicates efficient operations and the ability to generate significant income from its assets, supporting long-term business sustainability.

Cash Flow Generation

Improved cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively over the long term.

Stable Balance Sheet

A stable balance sheet with manageable leverage ensures the company can withstand economic fluctuations and invest in strategic initiatives without excessive financial risk.

Negative Factors

Negative Revenue Growth

Declining revenue growth could signal challenges in market demand or competitive positioning, potentially impacting long-term growth prospects if not addressed.

Low Return on Equity

Low return on equity suggests the company may not be utilizing its equity base effectively, which could limit its ability to generate shareholder value over time.

Cash Conversion Efficiency

Inefficient cash conversion can constrain liquidity, affecting the company's ability to reinvest in growth and meet financial obligations, posing a risk to long-term operational stability.

First Real Estate Investment Business Overview & Revenue Model

Company Description

First Real Estate Investment (AW9U) is a dynamic real estate investment firm focused on acquiring, developing, and managing a diversified portfolio of residential and commercial properties. The company operates primarily in key metropolitan areas, leveraging market trends to identify high-potential investment opportunities. Core services include property development, asset management, and real estate investment consulting, aimed at delivering sustainable growth and value to its stakeholders.

How the Company Makes Money

First Real Estate Investment generates revenue through several key streams. The primary source is rental income from its extensive portfolio of residential and commercial properties, which provides a steady cash flow. Additionally, the company profits from property appreciation and capital gains when assets are sold at a higher value than their acquisition cost. Another significant revenue stream comes from property management fees charged to third-party property owners for managing their real estate assets. The company may also engage in joint ventures or partnerships with other real estate firms, sharing profits from collaborative projects, which further enhances its earnings potential.

First Real Estate Investment Financial Statement Overview

Summary

First Real Estate Investment demonstrates strong profitability and efficient cost management, with robust margins across the board. However, declining revenue growth and modest return on equity highlight areas for improvement. The balance sheet is stable, with a moderate debt level, while cash flow generation shows positive trends despite some constraints.

Income Statement

The company exhibits strong profitability with a high gross profit margin of 86.9% and a net profit margin of 39.9% for TTM. However, revenue growth is negative, indicating a decline in sales. EBIT and EBITDA margins are robust, reflecting efficient cost management.

Balance Sheet

The debt-to-equity ratio is moderate at 0.78, suggesting a balanced capital structure. Return on equity is relatively low at 6.5%, indicating modest profitability from shareholders' equity. The equity ratio is stable, showing a solid asset base.

Cash Flow

Free cash flow growth is positive at 6.7%, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 0.26, suggesting potential cash flow constraints. The free cash flow to net income ratio is strong at 1.0, showing effective cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	100.69M	102.21M	108.57M	111.28M	102.35M	79.62M
Gross Profit	87.50M	88.40M	95.25M	97.80M	90.80M	68.06M
EBITDA	85.33M	68.83M	96.25M	94.77M	94.67M	57.88M
Net Income	40.17M	36.75M	63.34M	33.59M	63.11M	-352.41M
Balance Sheet
Total Assets	1.13B	1.16B	1.19B	1.20B	1.05B	1.00B
Cash, Cash Equivalents and Short-Term Investments	35.62M	34.67M	40.27M	46.10M	51.20M	19.29M
Total Debt	461.80M	453.48M	449.85M	451.07M	349.21M	489.00M
Total Liabilities	536.94M	528.23M	527.16M	533.26M	397.71M	540.94M
Stockholders Equity	595.81M	632.27M	660.17M	665.36M	651.82M	463.97M
Cash Flow
Free Cash Flow	68.22M	59.84M	65.03M	88.77M	65.54M	50.40M
Operating Cash Flow	68.22M	65.77M	69.95M	93.08M	66.20M	50.40M
Investing Cash Flow	-3.74M	-5.44M	-4.62M	8.12M	5.62M	1.02M
Financing Cash Flow	-62.24M	-64.92M	-69.26M	-102.65M	-40.08M	-65.11M

First Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:AW9U, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.27, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.26 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:AW9U.

First Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DHLU	73 Outperform	S$395.69M	13.17	5.87%	8.11%	-5.80%	-27.16%
CRPU	73 Outperform	S$844.34M	13.27	6.17%	8.87%	5.89%	1.81%
DCRU	71 Outperform	$652.00M	3.32	20.33%	7.15%	36.48%	―
MXNU	70 Neutral	£216.65M	14.20	6.30%	8.36%	-9.87%	―
AW9U	69 Neutral	S$580.52M	14.95	6.63%	8.11%	-11.43%	-39.27%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UD1U	65 Neutral	S$390.00M	29.59	1.69%	8.52%	-11.29%	―

First Real Estate Investment Corporate Events

First REIT Announces Redemption of S$33.25 Million Securities

First Real Estate Investment Trust has announced its intention to redeem its S$33,250,000 Fixed Rate Subordinated Perpetual Securities on January 8, 2026. This move is part of the company’s strategic financial management, potentially impacting its liquidity and financial structure, and reflects its commitment to maintaining a stable financial position for stakeholders.

First REIT Issues Units for Management Fee Payment

First Real Estate Investment Trust has issued 2,375,010 units to its manager, First REIT Management Limited, as part of the management fee payment for the period from July to September 2024. This issuance represents 50% of the performance fee component, with the remaining balance paid in cash. The units were issued at a price of S$0.2533 per unit, based on the volume weighted average price on the Singapore Exchange. Following this issuance, the manager holds 10.89% of the total units, potentially impacting the company’s market positioning and stakeholder interests.

First REIT Issues Units for Management Fee Payment

First Real Estate Investment Trust announced the issuance of 1,540,407 units to its manager, First REIT Management Limited, as partial payment of the management fee for the period from July to September 2025. This issuance, priced at S$0.2854 per unit, reflects the company’s strategy to manage its fee obligations through equity, impacting its unit holdings and potentially affecting market perceptions and stakeholder interests.

First REIT Reports Decline in Income Amid Currency Depreciation

First REIT reported a decrease in rental and other income by 2.0% to S$75.5 million and a decline in net property and other income by 1.4% to S$73.3 million for the nine months ending September 2025. The financial performance was impacted by the depreciation of the Indonesian Rupiah against the Singapore Dollar, although this was partially offset by higher rental income in local currency terms. The distributable amount fell by 6.1% to S$34.8 million, leading to a drop in distribution per unit from 1.78 to 1.65 Singapore cents, mainly due to currency depreciation and an increase in the unit base.

First REIT Announces Lease Extension for Siloam Hospitals Lippo Cikarang

First REIT Management Limited has announced a short-term lease renewal for Siloam Hospitals Lippo Cikarang, extending the lease term from December 2025 to June 2026. This extension is contingent on lender approvals and includes a provision for lease termination in the event of a property divestment. The annual rent for the extended period is set at S$4,488,670, with a pro-rated amount of S$2,256,633 for the extension duration.

First REIT to Release Q3 2025 Business Updates

First REIT Management Limited announced that the business updates for the third quarter ending on September 30, 2025, will be released after the market closes on October 28, 2025. This announcement is significant for investors and stakeholders as it provides insights into the company’s financial performance and strategic direction, which could impact its market position and investor confidence.