Should I buy First REIT stock in 2025?

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At HelloSafe, our expert has been monitoring First REIT's performance for over three years. Every month, hundreds of thousands of users in Singapore rely on us to interpret market trends and uncover the best investment opportunities. Our analyses are intended for informational purposes only and should not be considered as investment advice. In line with our ethical charter, we have never been, and will never be, compensated by First REIT.

What is First REIT?

How much is First REIT stock?

The price of First REIT stock is stable this week. As of today, First REIT trades at SGD 0.26, unchanged over the past 24 hours and week. The trust’s market capitalization stands at SGD 545.68 million, with an average 3-month trading volume of 1.33 million shares. It maintains a P/E ratio of 15.48 and offers an attractive dividend yield of 9.08%. With a low stock beta of 0.23, First REIT’s share price has shown subdued volatility, appealing to investors seeking steady income in Singapore’s healthcare REIT sector.

Our full analysis on First REIT stock

We have rigorously reviewed First REIT’s latest financial results and dissected the stock’s price action over the past three years, applying a proprietary blend of quantitative analysis, peer benchmarking, and technical indicators. Drawing on an ensemble of up-to-date market data, financial metrics, and corporate developments, our algorithms have synthesized an optimized outlook for this SGX-listed healthcare REIT. The question emerging for astute investors: Could First REIT be positioned as a top-tier re-entry point into the Asian healthcare real estate sector as we move through 2025?

Recent Performance and Market Context

Resilient Price Action and Relative Outperformance

First REIT (SGX: AW9U) has demonstrated encouraging stability and latent momentum through a period of market volatility. The unit price remains firmly anchored at SGD 0.26 as of 9 May 2025, registering a 6.12% gain over the past 12 months and up 1.96% year-to-date, materially outperforming many local REIT peers facing yield compression and occupancy erosion. Such stability, coupled with a consistent 3-month average trading volume of 1.33 million shares, underscores institutional interest and sustained liquidity—both foundational for renewed upward momentum.

Recent Corporate and Sector Tailwinds

• Trust Deed Amendments in Q1 2025 have enhanced capital management flexibility, notably permitting strategic buy-backs.
• Management Fees paid in units further align manager and unitholder interests.
• Portfolio Resilience is reflected in a robust 100% committed occupancy and flawless rental collection.

These factors, combined with the reality of a more dovish macro environment—particularly the anticipated easing of US interest rates—create a constructive backdrop for Singapore REITs. The healthcare real estate segment, in particular, is winning investor attention for its ‘defensive growth’ attributes as consumer demand for healthcare services accelerates across Asia.

Macroeconomic and Sector Backdrop

• Ageing populations and rising chronic disease incidences in Singapore, Indonesia, and Japan are driving long-term demand.
• Governments in Asia are actively pursuing healthcare infrastructure upgrades, further de-risking the landlord model for specialized REITs.
• As real rates are set to moderate, yield-oriented investors are rotating back toward high-dividend vehicles—directly supporting First REIT’s positioning.

Technical Analysis

Momentum Amplifies Buy-Side Arguments

• Moving Averages: The unit price trades decisively above the 20-, 50-, and 200-day moving averages—a statistically compelling alignment that frequently precedes positive medium- and long-term price action. Notably, the 20-day MA is acting as a dynamic support level, anchoring the uptrend.
• Support and Resistance: Strong support has been repeatedly tested and held at SGD 0.26, while resistance sits at SGD 0.28—the 52-week high and a potential breakout trigger.
• Momentum Indicators: A neutral RSI (14) confirms that neither overbought nor oversold conditions exist, providing further room to the upside. Meanwhile, the MACD is positive, reflecting underlying accumulation patterns.
• Volume Confirmation: Strong and sustained daily volume aligns with technical signals, yet the float remains manageable, suggesting that fresh demand can drive meaningful price appreciation.

Bullish Structure and Trigger Points

• Bullish Reversal Potential: Any clean break above SGD 0.28 may catalyze a renewed uptrend, especially if accompanied by above-average volume.
• Medium-Term Structure: As long as price remains above the 200-day MA, technical risk remains contained and the set-up heavily favors new positioning.

Fundamental Analysis

Firm Fundamentals Support Renewed Investor Interest

• Revenue and Distribution Resilience: In Q1 2025, rental and other income slipped just 2.8% year-on-year, with net property income similarly resilient at SGD 24.6 million (-2.2%). The DPU of SGD 0.0058, while 3.3% lower, maintains an annualized yield of 9.08%—among the highest across all S-REITs.
• Valuation: With a trailing P/E of just 15.48 and a price-to-book ratio of 0.86, First REIT trades at a meaningful discount to intrinsic value. The 15.4% upside to the consensus analyst target (SGD 0.30) reinforces the view that the current entry point appears underpinned by both asset value and earnings power.
• Structural Strengths:
• Long Weighted Average Lease Expiry: Outstanding 10.6 years, driving rental visibility and income security.
• Full Portfolio Occupancy: A rarity in the region.
• Premium Tenant Base: Indonesian hospitals operated by Siloam International Hospitals, and rigorous partners in Singapore/Japan, ensure both resilience and operational quality.

Expansion and Strategic Focus

• Geographic diversification into developed markets, diluting currency and regulatory risks.
• Portfolio asset reshaping to drive capital efficiency and adapt to megatrends in healthcare delivery.
• Ongoing discipline in strengthening the balance sheet and optimizing cost of capital.

Attractive Valuation and Sector Dynamics

• At current levels, First REIT is not only priced for current risks but leaves substantial headroom for positive surprises should currency headwinds abate or capital recycling accelerates.
• The sector’s defensive growth story remains intact, with the REIT’s fundamentals justifying renewed interest from both yield and growth-oriented participants.

Volume and Liquidity

High Trading Liquidity, Positive Market Sentiment

• Trading Volume: A robust 3-month average of 1.33 million shares daily underscores sustained market activity and institutional engagement.
• Liquidity and Float: The healthy float and tight bid-ask spreads foster favorable conditions for dynamic valuation and efficient price discovery.
• Indicative of Confidence: Episodes of increased volume on up days, especially on technical rallies, are classic hallmarks of growing investor conviction.

Such liquidity is particularly appealing for both retail and institutional investors seeking to enter or scale positions without undue market impact.

Catalysts and Positive Outlook

Multiple Visible Catalysts Drive Bullish Case

• Macro Catalysts: Rate cuts by the US Fed, if materialized in late 2025, will directly benefit the REIT’s refinancing costs and enhance distributable income.
• Currency Tailwinds: Stabilization or modest appreciation of the Indonesian Rupiah and Japanese Yen would provide immediate upside to reported results and DPU trajectory.
• Strategic Initiatives: The implementation of Growth Strategy 2.0, particularly in reshaping the portfolio toward developed markets, will reduce risk and expand market multiples.
• ESG and Sector Premium: First REIT’s healthcare focus increasingly aligns with ESG mandates, as stakeholders prize essential infrastructure with a positive social impact.
• Corporate Flexibility: Trust Deed amendments and the manager’s demonstrated willingness to accept fees in units—thus aligning incentives—signal best-in-class stewardship.

Sector and Competitive Edge

• Ongoing demographic shifts guarantee rising healthcare property demand across Asia for decades to come.
• With a diversified base, long lease tenures, and experienced operators, First REIT is structured to capture outsized benefits from these sector megatrends.

Investment Strategies

Why Now? Multi-Timeframe Opportunity

From both technical and strategic standpoints, conditions appear compelling for both tactical and longer-term positioning:

• Short-Term: The share price, technically anchored above key moving averages with neutral momentum readings, seems optimally poised for short-term swing trades or tactical exposure—especially as it approaches resistance with increasing volume.
• Medium-Term: Q3 and Q4 2025 may deliver crucial inflection points. Should currency pressures subside or the Fed initiate rate cuts, First REIT could see an accelerated recovery in both earnings and valuation multiples.
• Long-Term: For income-focused investors, the blend of a 9%+ yield, defensive sector exposure, and clear management commitment to long-term capital appreciation supports buy-and-hold strategies. As the REIT executes on its diversification plan and deepens presence in developed markets, structural upside remains substantial.

Ideal Entry Factors

• The stock appears to be trading at a technical floor, supported by volume, and ahead of multiple bullish catalysts including portfolio diversification, stabilization of Asian currencies, and possible upward revisions to consensus price targets.
• Analyst consensus already points toward a meaningful upside from the current market price—a clear signal that the risk/reward trade-off is currently favourable.

Is it the Right Time to Buy First REIT?

Key Strengths at the Forefront

• Robust 9.08% dividend yield and deep value on a P/B of 0.86
• Sector-defensive earnings in healthcare real estate with insulated cash flows
• 100% portfolio occupancy and a lease expiry profile unmatched in the segment
• High daily trading liquidity and, increasingly, a technical structure favoring new buyers
• Visible strategic levers—portfolio reshaping, market expansion, and strong corporate governance

Optimistic Projection and Serious Consideration

In summary, First REIT stands at the crossroads of defensive income and secular sector growth. Its current valuation seems to represent an excellent opportunity, with both its high yield and sector positioning justifying a fresh wave of investor interest. The underlying fundamentals, technical signals, and management initiatives all point to the REIT entering a new bullish phase, offering a combination of resilience and upside potential rarely seen at this price-to-value ratio.

For those seeking reliable income, exposure to healthcare megatrends, and significant capital appreciation potential, First REIT’s current configuration may warrant serious consideration as a buy-side opportunity for portfolios focused on the Singapore and Asian healthcare real estate sectors.

With technicals, fundamentals, and strategy all aligning, First REIT exemplifies how disciplined analysis can uncover opportunities with both income and growth potential in today’s evolving REIT landscape.

How to buy First REIT stock in Singapore?

Buying First REIT (SGX: AW9U) stock online in Singapore is straightforward and secure when you use a regulated broker. Investors typically have two main options: spot buying (direct ownership) and CFD trading (speculative contracts based on price movements). Both methods are available through leading online brokers operating under the Monetary Authority of Singapore (MAS) regulations, ensuring protection and transparency. Spot buying allows you to own real shares and benefit from dividends, while CFDs offer leverage and flexibility for short-term trading. To find the platform that suits your needs best, check out our broker comparison further down the page.

Spot buying

A cash purchase of First REIT stock means you are buying actual shares listed on the Singapore Exchange (SGX) and becoming a unitholder, entitled to dividends and capital gains. Most Singapore brokers charge a fixed commission per order—typically around SGD 5 to SGD 15—plus exchange fees.

Example

If the current share price of First REIT is SGD 0.26, you can buy approximately 3,830 shares with a SGD 1,000 investment, factoring in a typical brokerage fee of about SGD 5.

• Gain scenario: If the share price rises by 10% (to SGD 0.286), your holdings are now worth roughly SGD 1,100.
• Result: That’s a gross gain of SGD 100, representing a +10% return on your investment (before fees and taxes).

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on First REIT’s share price without owning the underlying shares. CFDs are flexible—allowing both long and short positions—and offer leverage, which amplifies gains (and losses). Fees for CFDs typically include the spread (difference between buy/sell price), and overnight financing charges if you hold positions beyond a trading day.

Example

You open a CFD trade on First REIT with a SGD 1,000 deposit and 5x leverage. This gives you exposure to SGD 5,000 worth of stock.

• Gain scenario: If the share price rises by 8%, your position gains 8% × 5 = 40%.
• Result: Your profit is SGD 400 on your initial SGD 1,000 margin (excluding spread and overnight fees).

Final advice

Before committing, always compare brokers’ fees, platform features, and support—these can impact your returns and the overall investing experience. Ultimately, the best method depends on your investment goals: choose spot buying for long-term dividend investing, or CFDs for more active, leveraged strategies. For a detailed overview of available platforms and costs, don’t miss our comprehensive broker comparison further down the page.

Our 7 tips for buying First REIT stock

The latest news about First REIT

First REIT's unit price remains stable at SGD 0.26 over the past week on the SGX. Despite market volatility and currency headwinds, First REIT's share price has shown stability, remaining flat for the week and sustaining gains of 6.12% over the past year. This resilience reflects continued investor confidence, likely driven by its defensive healthcare assets and sustained distribution yields, which are particularly attractive in the Singapore market.

Occupancy levels at First REIT's properties remain at a robust 100%, supporting income certainty for Singapore investors. The REIT maintains full committed occupancy across its diversified Asia-Pacific portfolio, which includes strategic assets in Singapore. Such high occupancy rates ensure consistent rental income streams and bolster the trust's reputation among local unitholders seeking income stability amid uncertain market environments.

Dividend yield stands out at 9.08%, offering a compelling income option compared to local alternatives. With distributable income translating into a quarterly payout and tax advantages for Singapore residents, the REIT's high yield far exceeds Singapore's prevailing fixed deposit rates and many SGD-denominated income products. Although the DPU has shown a slight year-on-year decline, the level remains highly competitive and is likely to appeal to yield-seeking investors within Singapore.

Technical indicators signal continued positive momentum, with the stock maintaining an uptrend on all major moving averages. First REIT is trading above its 20-, 50-, and 200-day moving averages, with neutral RSI levels and a positive MACD. This reflects sustained buying interest and technical strength in the REIT, factors that are often considered by professional analysts in Singapore when assessing potential entry points or reallocating into high-conviction positions.

Management advances strategic initiatives, including trust deed amendments and adherence to Growth Strategy 2.0, to future-proof the REIT. Recent amendments to the trust deed—specifically regarding the unit buy-back supplement—demonstrate proactive governance and adaptation to market needs, enhancing investor protection and capital management flexibility. Concurrently, the management's focus on diversification, capital structure resilience, and harnessing healthcare sector megatrends promises long-term growth potential, supporting a constructive outlook for Singapore-based investors.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.