Here is what's in store for Singapore's healthcare REITs in 2H13

New acquisitions will boost DPU.

According to OCBC, within the healthcare REITs space, both First REIT (FREIT) and Parkway Life REIT (PLREIT) recently reported 2Q13 results which were in-line with market expectations. 

Looking ahead, they expect 2H13 DPU to be boosted by new acquisitions. FREIT completed the purchase of two Indonesian hospitals from its sponsor Lippo Karawaci on 22 May this year, with an initial NPI yield of ~9.9%.

Here's more from OCBC:

A full quarter of contribution will kick in from 3Q13. For PLREIT, it completed the acquisition of two nursing homes in Japan on 12 Jul 2013, with the assets expected to generate an initial NPI yield of ~7.1%.

Organically, PLREIT will also be able to obtain a higher rental increase of 4.44% (effective 23 August 2013 to 22 August 2014) for its Singapore hospitals, which is based on a CPI + 1% lease formula