Excerpt from OCBC Group Research report.
Report Summary
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Stock Focus: Parkway Life REIT (PREIT SP)
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Action: BUY
Target Price: SGD 4.82
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Highlights & Key Insights:
- 1Q26 distribution per unit (DPU) increased 15.1% YoY to 4.42 Singapore cents, meeting expectations.
- Despite a tenant exit in Japan (1.6% of gross revenue), management asserts security deposits will offset outstanding obligations and new leasing discussions are ongoing.
- PLIFE’s balance sheet remains healthy with gearing at 34.2% and 96% of interest rate exposure hedged.
- While distribution yield (4.4%) is lower than most S-REITs, it is justified by the REIT’s track record, management quality, and growth avenues in Singapore, Japan, and Europe.
- Maintain BUY. Slightly revised Fair Value (FV) estimate from SGD4.83 to SGD4.82.
above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC Group Research website : https://www.ocbc.com
