Parkway Life REIT - Stability Priced In
- In its 1Q22 business update, Parkway Life REIT (SGX:C2PU) reported 1Q22 revenue of S$30.7m, up 2.3% y-o-y thanks to contributions from 3 Japan properties acquired in 2021 and higher rent from Singapore properties, partly offset by divestment of PLife Matsudo and depreciation of the ¥. Parkway Life REIT's 1Q22 performance was in line with our projections, at 24%/24.3% of our FY22F revenue/NPI forecasts.
- Stronger Singapore and Japan contributions due to organic and acquisition growth.
- We leave our FY21-23F DPU estimates for Parkway Life REIT unchanged and maintain our DDM-based target price of S$5.05 for Parkway Life REIT.
- With a robust balance sheet, Parkway Life REIT is well placed to tap inorganic growth opportunities, in our view. While we like Parkway Life REIT for its stability, backed by its defensive income structure with inbuilt escalation features, Parkway Life REIT's share price has outperformed in recent months and near-term upside appears limited. As such, we downgrade our rating for Parkway Life REIT to HOLD from Add.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2022-04-25 2022-04-25
Previous report by CGS-CIMB:
2021-11-04 Parkway Life REIT - Healthy Outlook
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Listing of broker reports at Parkway Life REIT Analyst Report.
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