Special distribution on the cards for RHT Health Trust

SINGAPORE (Aug 4): CIMB has upgraded RHT Health Trust (formerly known as Religare Health Trust) to “add” from “hold” with a higher price target of $1.11 from $1.06 previously on a one-off divestment gain.  

This comes despite RHT posting a lower 1QFY17 distribution per unit (DPU) than what CIMB has forecasted, due to forex translation impact and a lower payout ratio of 95%.

In a Tuesday report, analysts Lock Mun Yee and Yeo Zhi Bin note that average revenue per operating bed (ARPOB) was up 5.6%, while portfolio occupancy ticked up 4 percentage points to 76%. They add that the 1% increase in the number of operational beds to 2,629 in FY16 should contribute positively in FY17.

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