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Inching-up,....
Being Over-valued here is one thing,... now the gearing ratio has increased from your Feb 5th. reading of 36.0% to 37.5%,... NOT GOOD,... better unload more...
Divested 4 Nursing Homes in Japan today : http://plifereit.listedcompany.com/news.html/id/561279
PLife REIT is expected to recognise an estimated divestment gain (before tax but inclusive of the Japanese consumption tax rebate receivable) of approximately S$5.2 million over the Net Book Value. Any special dividend to be announced in February 2017 ?
Hmm.. don' t know but not complaining.. I have my SRS invested into this for my retirement.
surefire ( Date: 07-Jul-2016 14:18) Posted:
| Anyone knows why this stock is shooting up today? |
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Anyone knows why this stock is shooting up today?
My friend bought in March 2010 and still holding now. His average cost is 76 cents. He said from his dividends earned till end of 2015, he recouped 63% of his capital outlay. Based on 10 cents DPU p.a. it translate to aprox 13% yield based on his cost. With a stable 10 cents DPU for next 3 years, he would have recouped his capital (undiscounted) and going forwards will all be gains.
Yeah, but was due to absence of divestment gains this year as compared to prior year if I not wrong.
Plife is a pretty strong and stable REIT.
Gearing approx 35% (substantial amount of debt headroom of approx S$160m)
Wt avg debt maturity at 3.5 years (ample time to re-finance)
Effective all in cost of debt @ 1.6% p.a. (among the reits with lowest finance costs)
NAV at S$1.69 (Share price at a premium to NAV probably due to strong track records of delivering returns and the nature of its assets and leases)
Div yld approx 5.42% which is quite decent.
A plus point is its Sg assets lease terms have annual revision at CPI + 1%.
DPU lower than last year. ..
Looks like it may continue to head higher .
http:// spore share . blog spot.sg/2016/04/parkwaylife-reit.html
| Parkway Life REIT | PDF |
| 1Q16: Still growing, excluding one-offs |
PREIT SP / PWLR.SI | ADD - Maintained | S$2.45 tp:S$2.55▲
Mkt.Cap:US$1,097.00m | Avg.Daily Vol:US$1.29m | Free Float:57.40%
REIT
Author(s):Mun Yee LOCK +65 6210 8606, Zhi Bin YEO |
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■ 1Q16 results uplifted by Singapore and Japan contributions DPU still growing adjusting for previous divestment gains.
■ Singapore benefited from a 1.05% upward rent revision in 1Q16.
■ Income from higher-yielding assets helped Japan&rsquo s strong showing.
■ Stable resilient income stream with debt capacity for inorganic growth.
■ Maintain Add with a higher DDM-based target price of S$2.55.
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Results in line DPU accounts for c.25% of our full-year forecast
PREIT&rsquo s 1QFY16 results were in line with our expectations, and continued to demonstrate resilience, with revenue rising 8.6% to S$26.9m. This was underpinned by higher Singapore and Japan income, on the back of the latter&rsquo s asset recycling strategy. NPI margin held steady at 93.4%. However, DPU dipped 7% yoy to 2.99Scts, impacted by the lack of distribution from divestment gains in 1QFY16. Stripping this out, on a like-for-like basis, the bottom line would have grown 5.1% yoy.
Singapore income lifted by rent revision
Singapore operations made up a larger c.62% of NPI to c.S$15.5m, thanks to an upward minimum guarantee rent revision of 1.05% yoy. This came largely from Mt Elizabeth Hospital.
Japan contributions boosted by asset recycling activities
Japan operations produced a 22% yoy improvement in NPI to S$9.5m as PREIT&rsquo s asset recycling strategy paid off. PREIT sold S$88.3m worth of assets at 5.9% NPI yield and acquired S$126.1m worth of properties at 6.4% NPI yield in Dec 14-Mar 15. We estimate this would effectively raise its Japan NPI by c.12% yoy in 1QFY16. PREIT had recently acquired a nursing home facility in Sapporo, Hokkaido for S$13.6m or at a 6.7% NPI yield, at end-Mar 16. This should add to the bottom line from 2QFY16 onwards.
Stable and resilient income stream
PREIT&rsquo s portfolio remains one of the most resilient among S-REITs, with a long-weighted lease expiry profile of 9.01 years and downside protection for 93% of the leases by gross revenue. While we anticipate muted revenue growth of 1-2% in FY16 from lower inflation at its Singapore hospitals, we believe the new Japan contributions could pick up the slack. Furthermore, with a gearing of 36.4%, the trust is well positioned to seek further inorganic growth drivers.
Maintain Add
We maintain our Add rating with a slightly higher DDM-based target price of S$2.55 as we factor in the latest Sapporo acquisition. We think there could still be room for inorganic growth given the debt headroom of S$101.5m or S$265.4m, based on a 40% and 45% gearing, respectively.
Previous [ Parkway Life REIT ] reports...
28/7/15 Co.Results Asset recycling bears fruit (ADD, S$2.36 tp:S$2.56▼ )
29/4/15 Co.Results Successful capital recycling (ADD, S$2.42 tp:S$2.60)
27/1/15 Co.Results Disposal gain payout in FY15 (ADD, S$2.43 tp:S$2.60▲ ) |
A great AGM today,..1Q 2016 reporting comes on April 26th. next week,...
Times like these, best to run to healthcare REITs?
Stable 2Q15 results, which is continued to be boosted by divestment gains and higher rents from existing properties. Together with a decent dividend yield of about 5%, it can provide some diversification to income investors from other REITs.
http://www.investark.com/Analysis69plifereit2q15.html
This announcement came out a few adys ago. A similar ann' t like this came out too for First REIT earlier. Thinking about this whole thing, is there a remote possibility that the manager here, PTML would breach the terms, hence forcing the trustee to prepay that big amount, which, we all know would be quite impossible. Or any event that could cause the manager to breach any of the two conditions ?
Announcement following :-
ANNOUNCEMENT
DISCLOSURE PURSUANT TO RULE 704(31) OF THE SGX-ST LISTING MANUAL
Pursuant to Rule 704(31) of the SGX-ST Listing Manual, the Board of Directors of Parkway Trust Management Limited (" PTML" ), as manager of Parkway Life Real Estate Investment Trust (" Parkway Life REIT" ) wishes to announce that HSBC Institutional Trust Services (Singapore) Limited (in its capacity as trustee of Parkway Life REIT) (" Trustee" ) as borrower, has entered into a facility agreement on 23 June 2015 (the &ldquo Facility Agreement&rdquo ). Under the terms of the Facility Agreement, the Trustee is required to, inter alia, prepay the outstanding amounts under the Facility Agreement in the event that:
(a) PTML ceases to be the manager of Parkway Life REIT or
(b) Parkway Holdings Limited ceases to own, directly or indirectly, at least 51% of the shares in PTML,
but only if the parties to the Facility Agreement fail to reach an agreement on the revised terms of the facilities within a negotiation period of not more than 30 days from the occurrence of any of the above events (collectively, " Loan Covenants" ).
As at the date of this announcement, no prepayment pursuant to the Loan Covenants has occurred.
As at the date of this announcement, the aggregate level of facilities that may be affected by the breach of the Loan Covenants (excluding interest, prepayment fee, premium, penalty or break funding costs) (in each case, if applicable)) under the Facility Agreement is approximately S$555,000,000.
By Order of the Board
Parkway Trust Management Limited
(Company Registration no. 200706697Z)
As manager of Parkway Life Real Estate Investment Trust
Yong Yean Chau
Director / Chief Executive Officer
23 June 2015
Healthcare REITs: Expecting growth in 2H13By Andy Wong
Within the healthcare REITs space, both First REIT (FREIT) and Parkway Life REIT (PLREIT) recently reported 2Q13 results which were in-line with market expectations. Looking ahead, we expect their 2H13 DPU to be boosted by new properties acquired over the past 1-3 months. Despite the volatility in the IDR and JPY vis-à-vis the SGD, there has been minimal impact on FREIT and PLREIT due to a favourable lease structure and hedging strategies adopted, respectively. Both healthcare REITs are also seeking to mitigate their interest rate risks. But we maintain NEUTRAL on the healthcare REITs sub-sector given its pricey valuations and negative sentiment surrounding interest rate sensitive instruments. 2H13 to be boosted by contribution from new acquisitions
Within the healthcare REITs space, both First REIT and Parkway Life REIT recently reported 2Q13 results which were in-line with market expectations. Looking ahead, we expect 2H13 DPU to be boosted by new acquisitions. FREIT completed the purchase of two Indonesian hospitals from its sponsor Lippo Karawaci on 22 May this year, with an initial NPI yield of ~9.9%. A full quarter of contribution will kick in from 3Q13. For PLREIT, it completed the acquisition of two nursing homes in Japan on 12 Jul 2013, with the assets expected to generate an initial NPI yield of ~7.1%. Organically, PLREIT will also be able to obtain a higher rental increase of 4.44% (effective 23 August 2013 to 22 August 2014) for its Singapore hospitals, which is based on a CPI + 1% lease formula.
FX volatility has minimal impact on healthcare REITs
Although there has been heightened volatility in the IDR and JPY vis-à-vis the SGD in recent months, this has minimal impact on healthcare REITs. For FREIT, the base rental for its Indonesian properties is denominated in SGD, while the variable rental component is pegged to a fixed SGD/IDR rate throughout the entire lease tenure. Although PLREIT?s 1H13 revenue fell 1.2% due to a weaker JPY, DPU still grew 4.5% as management had extended its JPY denominated net income forward hedge in 1Q12 for another five years until 1Q17. It also adopts a natural hedge strategy for its operations in Japan.
Mitigating Interest rate risks
Both healthcare REITs are cognisant of the negative impact that would result from a rising interest rate environment. Approximately 75% of PLREIT?s borrowings have been hedged as fixed rate debt. For FREIT, although 72% of its debt is based on a floating rate structure, management is in the process of finalising the refinancing of ~S$92m of its floating-rate debt to a 4-year fixed-rate unsecured bank loan. This would lower its floating rate exposure to ~46% upon completion.
Maintain NEUTRAL
We maintain NEUTRAL on the healthcare REITs sub-sector given its pricey valuations (average forward P/B of 1.36x, versus S-REITs universe?s 0.96x average) and negative sentiment surrounding interest rate sensitive instruments given concerns that the tapering of QE may be announced at the next FOMC meeting in mid-Sep.
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