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.
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.
Above is an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
Use Trust Referral Code PGKPSWAE to sign up NTUC Link or Trust Link Credit Card or open a Trust Bank savings account this December: ✨Earn up to S$1,000 cashback reward 🎟 and win an XPENG G6 SUV 🚙 !
