OCBC Investment Research cut its rating on healthcare real estate investment trust First REIT to hold from buy due to the strong unit price performance this year, but raised its price target to $0.935 from $0.89.
First REIT units were down 0.5% at $0.92, having risen 22% so far this year.
While the hospitals owned by First REIT and operated by its sponsor, Lippo Karawaci, continued to grow with higher revenue in 2011 fiscal year than a year ago, the growth rates of some of these hospitals have eased partly due to the higher base effect, OCBC said.
OCBC said organic growth for First REIT would likely be relatively stable in 2012 and it expects base rents for the company's Indonesian assets to rise 2%.
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