First Real Estate Investment Trust (First REIT) announced yesterday that the market value of its eight properties barely changed vis-a-vis 2007. The news came out after the revaluation of the trust’s properties on 26 Dec 2008.
The properties were revalued at $324.9 million, compared to the $325.6 million book value as of December 31, 2007. Four of the eight properties are in Singapore and the other half are in Indonesia. The financial adjustments will be reflected in First REIT’s financial statements for the fourth quarter ending 31 December 2008.
Five of the eight properties (three in Singapore) were revalued slightly below their 2007 prices. Knight Frank valued the properties in Singapore, while PT Willson Properti Advisindo appraised those in Indonesia.
First REIT also announced that it would buy its ninth property in Tuas. The company expects to acquire a healthcare logistics and distribution center at $42 million by the latter part of 2009. According to the trust, the acquisition will increase its asset value by 13% to $368 million. The new property is also expected to increase the share of income contribution of its Singaporean assets from 14% to 21%.
The stock price of First REIT dropped by 48.1% this year. As of yesterday, share price hovered at 40 cents.