Analysts from DBS Group Research and CGS-CIMB Research are upbeat on Parkway Life REIT (PREIT) following the renewal of its master lease agreement (MLA) with IHH Healthcare for its three Singapore hospitals.

To that end, DBS has upped its target price from $4.50 to $5.75, while CGS-CIMB has raised its target price from $4.80 to $5.05. The brokerages have “buy” and “add” calls on PREIT respectively.

The new MLA will be for a term of 20.4 years from Aug 23, 2022 to Dec, 31, 2042, with an option to renew for a further 10 years to Dec 31, 2052. 

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