- We hosted Parkway Life REIT (SGX:C2PU) on non-deal roadshow to Taipei on 18 and 19 November.
- We expect rents from Singapore hospitals to increase by 31.0% in 2026 (previous: +24.5%). Parkway Life REIT can enhance organic growth through AEI for Gleneagles Hospital and two nursing homes in France. It is exploring a potential acquisition / development of an ambulatory centre in Singapore.
Healthcare-orientation provides sustainable growth.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
Singapore hospitals provide growth from variable rents.
- Project Renaissance would be fully completed by 4Q25. Mount Elizabeth Hospital was operating with only 50% of its hospital beds available in 1H25. All its hospital beds are back online since Jul 25, which greatly enhanced revenue generation.
- The three Singapore hospitals, namely Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital, provided fixed rental escalation of 3% per year during Project Renaissance in 2023-25. Singapore hospitals have the potential to provide variable rent in 2026 as sponsor IHH Healthcare (SGX:Q0F)’s revenue from Singapore hospitals has grown at an estimated 6.6% in 2023, 9.1% in 2024 and 3.5% in 1H25, which is much higher than 3%.
- We have assumed that revenue from Singapore hospitals will rebound 20% h-o-h in 2H25 (2025: +13%). We estimated rents from Singapore hospitals at S$104.4m in 2026, which is 5.3% higher than the existing forecast of S$99.2m based on escalation at CPI + 1%.
Growth from AEI for Gleneagles Hospital.
- Read more at SGinvestors.io.
