SINGAPORE (Oct 28): DBS Vickers is maintaining its “buy” rating for Parkway Life Real Estate Investment Trust, even as the REIT posted a 8.8% decline in 3Q DPU to 3.06 cents.
DBS analysts Rachel Tan and Derek Tan noted that the REIT’s core earnings had, in fact, risen 2.7%, when the one-off distribution of divestment gains seen in 2QFY15 that were not repeated in the current quarter. Net property income had also risen 8% from its Singapore hospitals.
To be sure, DBS believes the investment idea behind Parkway Life is that it offers “one of the strongest earnings visibility profile among SREITs, with a weighted average lease expiry of close to 9 years”.
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