Does RHT Health Trust have ample debt headroom for its expansion plans?

It plans to add almost 300 beds over over FY18/19.

Whilst DBS analysts are positive on RHT’s expansion plans in the long term and exposure to the growing demand for healthcare services in India, they believe the loss of income from the sale of (FHTL) has yet to be fully priced in.

Here’s more from DBS:

RHT still has ample debt headroom of S$325m. Its gearing is among the lowest in the S-REIT/property business trust space.

This allows RHT to easily support its expansion plans and/or pursue accretive acquisitions including (i) ongoing development projects at BG Road and Ludhiana, adding 279 beds by FY17/18, and (ii) planned asset enhancement initiatives at various clinical establishments, adding 272 beds over FY18/19.