First Real Estate Investment (AW9U) AI Stock Analysis

• Market Cap: $579.44M
• Dividend Yield: 8.58%
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.43
• Revenue Growth: -11.43%
• EPS Growth: -39.27%
• Country: SG
• Employees: 23
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.01
• Shares Outstanding: 2,107,054,000
• 10 Day Avg. Volume: 2,602,420
• 30 Day Avg. Volume: 2,014,566
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 7.71
• Enterprise Value/Gross Profit: 8.84
• Enterprise Value/Ebitda: 11.02
• 1Y Price Target: $0.50
• Price Target Upside: 78.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: S$0.50 ▲(78.57% Upside)

First Real Estate Investment's overall stock score is driven by its strong valuation, characterized by a high dividend yield and reasonable P/E ratio, making it attractive for income investors. The technical analysis indicates positive momentum, although caution is advised due to overbought signals. Financial performance is solid, with strong profitability and cash flow, but challenges in revenue growth need to be addressed for future improvement.

First Real Estate Investment Business Overview & Revenue Model

Company Description

First Real Estate Investment Trust ("First REIT") is a real estate investment trust constituted by the Trust Deed entered into on 19 October 2006 between First REIT Management Limited (formerly Bowsprit Capital Corporation Limited) as the Manager and HSBC Institutional Trust Services (Singapore) Limited as the Trustee. First REIT was listed on the Singapore Exchange Securities Trading Limited on 11 December 2006. On 1 March 2018, HSBC Institutional Trust Services (Singapore) Limited retired as the Trustee of First REIT in favour of Perpetual (Asia) Limited. First REIT is Singapore's first healthcare real estate investment trust that aims to invest in a diversified portfolio of income-producing real estate and / or real estate-related assets in Asia that are primarily used for healthcare and / or healthcare-related purposes. Managed by First REIT Management Limited,, First REIT's portfolio consists of 20 properties located in Indonesia, Singapore and South Korea, namely 1) Siloam Hospitals Lippo Village, 2) Siloam Hospitals Kebon Jeruk, 3) Siloam Hospitals Surabaya, 4) Imperial Aryaduta Hotel & Country Club, 5) Mochtar Riady Comprehensive Cancer Centre, 6) Siloam Hospitals Lippo Cikarang, 7) Siloam Hospitals Manado & Hotel Aryaduta Manado, 8) Siloam Hospitals Makassar, 9) Siloam Hospitals Bali, 10) Siloam Hospitals TB Simatupang, 11) Siloam Hospitals Purwakarta, 12) Siloam Sriwijaya, 13) Siloam Hospitals Kupang & Lippo Plaza Kupang, 14) Siloam Hospitals Labuan Bajo, 15) Siloam Hospitals Buton & Lippo Plaza Buton, 16) Siloam Hospitals Yogyakarta, 17) Pacific Healthcare Nursing Home @ Bukit Merah, 18) Pacific Healthcare Nursing Home II @ Bukit Panjang, 19) The Lentor Residence and 20) Sarang Hospital. Its hospital assets in Indonesia are operated by PT Siloam International Hospitals Tbk, a subsidiary of PT Lippo Karawaci Tbk, a strong brand name in the Indonesian healthcare industry supported by a team of international healthcare professionals whereas The Imperial Aryaduta Hotel & Country Club and Hotel Aryaduta Manado are operated by The Aryaduta Hotel and Resort Group. The Lippo Plaza Kupang and Lippo Plaza Buton are managed by PT Lippo Malls Indonesia. In Singapore, the nursing homes at Bukit Merah and Bukit Panjang are operated by Pacific Healthcare Nursing Home Pte. Ltd. and Pacific Eldercare and Nursing Pte. Ltd., respectively. The Lentor Residence is operated by The Lentor Residence Pte. Ltd. In South Korea, the Sarang Hospital is operated by a private doctor. Through First REIT, investors can participate in an asset class that has a focus towards Asia's growing healthcare sector, which is boosted by an increase in life expectancy in Indonesia and the rest of Southeast Asia.

How the Company Makes Money

First Real Estate Investment generates revenue through a combination of rental income, property sales, and development projects. The company earns rental income by leasing its commercial and residential properties to tenants, providing a steady stream of cash flow. Additionally, First Real Estate Investment engages in the sale of properties, capitalizing on market conditions to maximize profits from its real estate holdings. The company also undertakes property development projects, which involve the acquisition and improvement of land or existing structures to increase their value before selling or leasing them. Partnerships with construction firms, financial institutions, and other stakeholders play a crucial role in supporting these development initiatives, enabling the company to expand its portfolio and enhance its revenue potential. Furthermore, First Real Estate Investment may explore joint ventures and strategic alliances to access new markets and opportunities, thereby diversifying its revenue streams and ensuring long-term financial stability.

First Real Estate Investment Financial Statement Overview

Summary

The company demonstrates resilience with strong gross and EBITDA margins, but faces challenges with declining revenue and net income volatility. The balance sheet reflects stable leverage and equity levels, though cash flow management needs improvement to ensure consistent growth.

Income Statement

The income statement reveals a declining revenue trend over the past few years, with a sharp decrease from 2019 to 2020. The gross profit margin remains strong at about 86.5% in 2024, but net profit margins have been volatile, with significant losses in 2020. EBIT margins are unavailable for 2024, but EBITDA margins have been stable, at around 67.3% in 2024. Fluctuating net income and EBIT indicate potential operational challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.72 in 2024, suggesting manageable leverage. The equity ratio remains stable at approximately 54.5% in 2024, indicating a solid equity base. However, the return on equity has been inconsistent, with a decrease in net income affecting ROE in recent years.

Cash Flow

Cash flows highlight a strong free cash flow position, though there was a decrease in 2024. The operating cash flow to net income ratio is positive, indicating effective cash generation relative to earnings. However, free cash flow growth has been inconsistent, reflecting potential volatility in cash management strategies.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.21M	108.57M	111.28M	102.35M	79.62M
Gross Profit	88.40M	95.25M	108.18M	99.91M	77.05M
EBITDA	68.83M	96.25M	67.20M	83.34M	57.88M
Net Income	36.75M	63.34M	33.59M	63.11M	-352.41M
Balance Sheet
Total Assets	1.16B	1.19B	1.20B	1.05B	1.00B
Cash, Cash Equivalents and Short-Term Investments	34.67M	40.27M	46.10M	51.20M	19.29M
Total Debt	453.48M	449.85M	451.07M	349.21M	489.00M
Total Liabilities	528.23M	527.16M	533.26M	397.71M	540.94M
Stockholders Equity	632.27M	660.17M	665.36M	651.82M	463.97M
Cash Flow
Free Cash Flow	59.84M	65.03M	88.77M	65.54M	50.40M
Operating Cash Flow	65.77M	69.95M	93.08M	66.20M	50.40M
Investing Cash Flow	-5.44M	-4.62M	8.12M	5.62M	1.02M
Financing Cash Flow	-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: Positive
• 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 Positive momentum. The RSI at 53.39 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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
CRPU	74 Outperform	S$860.03M	15.22	5.45%	8.88%	-3.56%	-10.89%
AW9U	73 Outperform	$579.44M	14.95	6.63%	8.58%	-11.43%	-39.27%
DHLU	73 Outperform	S$405.68M	13.52	5.87%	7.33%	-5.80%	-27.16%
DCRU	71 Outperform	$675.24M	3.46	20.33%	6.99%	36.48%	―
Sector *	63 Neutral	$6.82B	13.05	-0.66%	7.37%	3.70%	-24.53%
UD1U	56 Neutral	S$396.73M	30.10	1.69%	9.47%	-11.29%	―
MXNU	―	£207.36M	13.60	6.30%	―	―	―

First Real Estate Investment Corporate Events

First REIT Holds Sixteenth Annual General Meeting

First REIT Management Limited held its sixteenth annual general meeting on April 29, 2025, at Hilton Singapore Orchard, where it addressed questions from unitholders and the Securities Investors Association (Singapore) regarding the AGM agenda. The announcement highlights the inherent risks and uncertainties in investing in First REIT units, emphasizing that their value may fluctuate and are not guaranteed by the manager or trustee, with trading intended only through the Singapore Exchange.

The most recent analyst rating on (SG:AW9U) stock is a Buy with a S$0.30 price target. To see the full list of analyst forecasts on First Real Estate Investment stock, see the SG:AW9U Stock Forecast page.

First REIT Issues Units for Management Fee Payment

First Real Estate Investment Trust announced the issuance of 2,493,807 units to its manager as partial payment for the management fee for the first quarter of 2024. This issuance represents 10.54% of the total units in circulation, reflecting the company’s ongoing strategy to balance cash payments with unit issuance, potentially impacting its liquidity and market positioning.

First REIT Issues Units for Management Fee Payment

First Real Estate Investment Trust announced the issuance of 1,659,854 units to its manager, First REIT Management Limited, as partial payment for the management fee for the first quarter of 2025. This issuance represents 10.61% of the total units in circulation, reflecting the company’s strategy to manage its financial obligations while maintaining a significant stake in its own trust.