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 @ https://www.dbs.com/insightsdirect/.
Rachel TAN DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2022-03-04 2022-03-04
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.
Parkway Life REIT Share Price History,
Parkway Life REIT Announcements,
Parkway Life REIT Dividends & Corp Actions,
Parkway Life REIT News Articles