CGS-CIMB Research analysts Lock Mun Yee and Eing Kar Mei have maintained their “hold” rating on Parkway Life REIT (PLife REIT) after the REIT posted its results for the 4QFY2020 ended December.
See: Parkway Life REIT reports 6.7% higher 4Q DPU of 3.57 cents, bringing FY2020 DPU to 13.79 cents
PLife REIT, on Jan 25, posted 4QFY2020 distribution per unit (DPU) of 3.57 cents and FY2020 DPU of 13.79 cents, which came in slightly above the analysts’ expectations at 26.6% and 102.6% of their 4QFY2020 and FY2020 forecasts respectively.
On that, Lock and Eing have upped their target price on the REIT to $4.11 from $4.03 previously.
They have also increased their FY2021-2022 DPU estimates by 2.04% and 2.03% respectively upon factoring in contributions from the REIT’s new acquisitions made in December 2020.
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“While we like PLife REIT for its stable yield backed by its defensive income structure, our recommendation remains a ‘hold’ given the 6% total return based on its current share price,” the analysts write in a Jan 25 report.
“We would be buyers on any share price weakness. Upside risks include accretive acquisitions while downside risks include deflationary periods whereby Singapore rent revisions would revert to 1%,” they add.
As at 10.59am, units in PLife REIT are trading 2 cents higher or 0.5% up at $4.08.
