Parkway Life REIT - OCBC Research 2026-07-01: A June Reset

• Parkway Life REIT announced on 30 June that it has divested Etoile Suma Rikyu, a nursing home facility located in Hyogo Prefecture, Japan, to an existing operator.

Capital recycling in Japan.

• - Read this at SGinvestors.io -

• The divestment is not expected to have a material impact on Parkway Life REIT's DPU for FY26.

Project Renaissance: Strategic transformation rather than a surface-level refurbishment.

• - Read this at SGinvestors.io -

• Beyond modernising facilities, Project Renaissance has also future-proofed the asset by incorporating new digital technologies (e.g. predictive fall prevention system, LizWorld Patient Information System), and by preparing additional capacity in anticipation of shifting disease trends (such as younger and more complex incidences of cancer).

• Altogether, the visit gave us greater confidence that the performance of the Singapore hospitals may exceed minimum rent going forward, thereby allowing Parkway Life REIT to participate in revenue sharing.

• According to management, Mount Elizabeth services the most medical tourists amongst hospitals in Singapore, and international revenue is disproportionately higher than volumes due to higher intensity procedures being done. The hospital is still in ramp-up phase post-CAPEX works, and this is expected to last roughly 24 months.

Revised fair value estimate of S$4.80.

• Read more at SGinvestors.io.

Ada Lim OCBC Group Research | https://www.iocbc.com/ 2026-07-01

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