- Acquisition of newly-built nursing home property in Osaka, Japan is expected to be accretive to Parkway Life REIT's distribution per unit (DPU) while increasing income diversification.
Further inorganic growth in Japan
- - Read this at SGinvestors.io -
- The 138-bed property has a remaining lease term of around 30 years with annual gross rental of JPY127.2m (~S$1.1m), and will not only increase Parkway Life REIT’s weighted average lease expiry (by gross revenue) from 16.05 years to 16.17 years as at 30 Jun 2024, but also increase income diversification amongst properties and lessees from its Japan portfolio.
- - Read this at SGinvestors.io -
- The purchase consideration of JPY2.4b represents a 9.1% discount to the property’s independent valuation of JPY2.7b as at 30 Jun 2024. The acquisition will be fully funded by JPY debt, and this is estimated to increase Parkway Life REIT’s leverage ratio from 35.3% to 35.9% as at 30 Jun 2024 on a pro forma basis.
- Management expects the acquisition to be DPU-accretive, though it is not expected to have a material impact on Parkway Life REIT's FY24 DPU or net tangible assets.
Revised fair value estimate of S$4.48
- 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/ 2024-09-23
Read also OCBC's most recent report:
2024-11-01 Parkway Life REIT - The Start Of Something New.
Previous report by OCBC:
2024-10-21 Parkway Life REIT - An Anchor Even Amidst An Abating Storm.
Price targets by 2 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
