According to ParkwayLife REIT’s prospectus, for the next 15 years, the revised rent for the first year should not exceed 15% of the adjusted hospital revenue for FY2021. Clarity on the next 15 years is likely to be seen either this year or the next.
SINGAPORE (Feb 10): ParkwayLife REIT closed at $3.58 on Jan 31, up 6.2% in January alone. Since its IPO in 2007 at $1.28 per unit, ParkwayLife REIT’s unit price has more than doubled. The REIT has never had a rights issue, or a preferential equity offering in the almost 13 years since its IPO. Unitholders have recouped their initial investment in dividends alone. Although its current yield, based on a full-year distribution per unit of 13.19 cents (up 2.5% y-o-y) for FY2019, is below 4%, its DPU yield on cost is more than 10%. The DPU has grown by 108.7% since the IPO.
Interestingly, the clock has started ticking on ParkwayLife REIT’s 15-year master lease for its Singapore portfolio comprising Gleneagles Hospital, Mount Elizabeth Hospital and Parkway East Hospital.
