Broker: CGS International
Date of Report: May 4, 2026
Excerpt from CGS International report.
Report Summary
Stock: Parkway Life REIT (PREIT SP)
Action: Add (Buy)
Target Price: S\$4.97
Current Price: S\$4.02
Upside: 23.5%
Key Highlights:
- 1Q26 DPU (Distribution per Unit) of 4.42 Scts, up 15.1% YoY, in line with forecasts.
- Singapore portfolio remains resilient, benefiting from higher minimum rent and annual escalation (FY26F minimum rent: S\$99.1m, escalation: 1% + CPI).
- Mount Elizabeth Hospital asset enhancement completed, achieving Green Mark platinum certification, supporting sustainability and future income growth.
- Japan portfolio impacted by tenant default, but security deposits largely offset outstanding rental; re-leasing and asset rejuvenation strategies underway.
- Stable financials: Gearing at 34.2%, 96% of interest rate exposure hedged, net forex income hedges in place.
- Reiterate Add rating due to defensive income structure and visible rent escalation. Main risks: currency weakness and deflationary periods.
- Dividend Yield forecast: 4.3% (FY26F), 4.5% (FY27F), 4.6% (FY28F).
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com
