However, a weaker yen offset some of the gains, as had higher financing costs related to the funding of so-called Project Renaissance, which refers to an extensive AEI to be done to the Mount Elizabeth Hospital as part of the lease renewal. Parkway Life REIT will spend $150 million and sponsor IHH Healthcare (SGX:Q0F
) another $200 million.
UOB Kay Hian's Jonathan Koh has kept his "buy" call on Parkway Life REIT following its FY2023 results. And with steady distribution growth ahead, he has raised his target price to $5.07 from $4.84.
For its 2HFY2023, Parkway Life REIT reported a distribution per unit of 7.48 cents, up 2.1% y-o-y, in line with expectations. The higher payout stems from stronger revenue and net property income from the REIT's acquisitions in Japan and higher rents collected from the Singapore hospitals.
