BRI Danareksa Sets Rp 2,850 Target for Siloam Hospitals on Long-Term Growth Following $434M Property Acquisition

JAKARTA, Investortrust.id — BRI Danareksa Sekuritas has maintained its Buy recommendation for PT Siloam International Hospitals Tbk (SILO) with a target price of Rp 2,850 per share, balancing short-term profit headwinds against reinforced long-term balance sheet stability.

The domestic brokerage reaffirmed its constructive stance despite anticipated earnings compression resulting from SILO’s multi-trillion-rupiah acquisition of 14 entities that own hospital properties.

In a research note released on Wednesday, Sept. 23, 2026, BRI Danareksa Sekuritas highlighted that SILO's long-term operating expansion remains solid. However, the corporate transaction is expected to exert near-term pressure on consolidated financial performance due to a sharp escalation in borrowing costs.

Two-Phase Real Estate Buyout Worth Rp 6.91 Trillion

SILO has formally secured shareholder approval to acquire 14 companies holding hospital properties from Singapore-listed First Real Estate Investment Trust (First REIT) in an aggregate transaction valued at approximately Rp 6.91 trillion ($434.59 million).

The acquisition will be executed in two successive stages. The initial phase involves the acquisition of eight property-holding entities for roughly Rp 4.1 trillion ($257.86 million), targeted for completion by October 2026. The second phase covers the remaining six companies with an estimated transaction value of Rp 2.8 trillion ($176.10 million), with implementation scheduled to conclude by March 31, 2027.

Earnings Compression from Financing Costs and Depreciation

BRI Danareksa Sekuritas projects that the buyout will trim SILO's consolidated net profit by roughly 4% in 2026 and 24% in 2027 relative to earlier baseline forecasts.

The projected margin compression is primarily attributable to elevated debt servicing costs. The brokerage incorporated an assumed financing cost of approximately 6.5% to service the capital raised for the transaction.

While SILO will unlock immediate operational savings by terminating rental payments on the acquired hospital facilities, analysts noted that these rental savings will be predominantly absorbed by an uptick in fixed asset depreciation expenses.

Operational Resilience Offsets Transition Headwinds

The earnings impact from the first phase of the acquisition is expected to emerge in the fourth quarter of 2026. A heavier net impact will materialize in 2027 as operational figures reflect both phases of the asset integration.

Despite the near-term drag on net earnings, BRI Danareksa Sekuritas concluded that the structural move solidifies SILO's operating foundation over the longer term. Transitioning from tenant status to direct ownership reduces recurring rental obligations and expands the hospital network's unencumbered physical asset footprint.

The brokerage expects SILO’s core operating performance to remain robust through the third quarter of 2026, though headline net earnings will face initial consolidation drag once acquisition costs enter the ledger in the final quarter of the year.