Parkway Life REIT - OCBC Investment 2024-05-02: A Stellar Start To The Year; 4% DPU Growth In Spite Of FX Headwinds

Parkway Life REIT - A Stellar Start To The Year; 4% DPU Growth In Spite Of FX Headwinds

Published:
Parkway Life REIT (SGX:C2PU) | SGinvestors.ioParkway Life REIT (SGX:C2PU)
  • Parkway Life REIT (SGX:C2PU)’s 1Q24 gross revenue declined 2.7% y-o-y to S$36.3m, as JPY depreciation was partially offset by contributions from properties acquired in FY23, as well as rental step-ups from Singapore hospitals and some Japanese nursing homes. NPI declined by a similar margin (-2.8% y-o-y) to S$34.3m.

Track record of DPU growth continued on the back of JPY net income hedges

  • - Read this at SGinvestors.io -
  • - Read this at SGinvestors.io -

Strong balance sheet and healthy credit metrics

  • Parkway Life REIT’s gearing rose 0.8 percentage points (ppt) from 35.6% as at 31 Dec 2023 to 36.4% as at 31 Mar 2024, but remains at a healthy level, in our view. This comes as loans were drawn down for CAPEX and working capital purposes, while the value of investment properties saw a slight decline on the back of JPY depreciation.
  • All-in cost of debt remained fairly stable, inching up 3bps to 1.30% over the same period, with 91% of interest rate exposure hedged.
  • We note that Parkway Life REIT has no long-term debt refinancing needs until Mar 2025, and an ample debt headroom of S$361.4m and S$629.2m before reaching the 45% and 50% gearing levels, respectively.

We continue to like Parkway Life REIT for its defensive, stable portfolio and steady track record of DPU growth

  • Read more at SGinvestors.io.




Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.




Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2024-05-02



Read also OCBC's most recent report:
2024-10-21 Parkway Life REIT - An Anchor Even Amidst An Abating Storm.

Previous report by OCBC:
2024-09-23 Parkway Life REIT - Continue To Favour Quality.

Price targets by other brokers at Parkway Life REIT Target Prices.

Listing of research reports at Parkway Life REIT Analyst Reports.

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





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