ParkwayLife REIT - DBS Research 2022-03-04: Inflation-linked Rental Growth

ParkwayLife REIT - Inflation-linked Rental Growth

  • ParkwayLife REIT (SGX:C2PU)'s FY21 DPU grew 2.1% y-o-y, contributed by higher rents, offset by depreciation of JPY, and one-off allowance for doubtful debts; cost of debt at all time low of 0.52%.
  • ParkwayLife REIT has surpassed expectations with the renewal of the Singapore hospitals’ master lease that comes with a ~40% rent increment, 27% rise in NAV, and 20-year extension of the lease tenure. While trading at a premium of 2.4x P/NAV, we believe ParkwayLife REIT’s growth story remains intact with catalysts in the pipeline.
  • The ROFR on Mount Elizabeth Novena Hospital has been “renewed” for 10 years, implying ParkwayLife REIT’s intention to remain Singapore-centric and the committed support that its sponsor lends.
  • ParkwayLife REIT’s management believes that it is timely to look at building a 3rd pillar for the company’s next growth phase, which, we think, would be in matured markets.
  • Maintain BUY rating on ParkwayLife REIT and raised target price to S$5.75. We have factored in the renewal of the master lease and assumed new acquisitions worth S$25m.

Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Rachel TAN DBS Group Research | Derek TAN DBS Research | 2022-03-04
SGX Stock Analyst Report BUY MAINTAIN BUY 5.750 SAME 5.750

Previous report by DBS Research:
2021-07-15 Parkway Life REIT - A New Lease Of Life Secured For The Next Two Decades

Target prices by 2 other brokers at Parkway Life REIT Target Prices.
Listing of broker reports at Parkway Life REIT Analyst Report.

Relevant links:
Parkway Life REIT Share Price History,
Parkway Life REIT Announcements,
Parkway Life REIT Dividends & Corp Actions,
Parkway Life REIT News Articles


SGX Stock / REIT Search


Trust Bank Referral Code