Parkway Life REIT kept at 'buy' by DBS on strong earnings visibility

Parkway Life REIT kept at 'buy' by DBS on strong earnings visibility

PC Lee
26/10/18, 03:36 pm

SINGAPORE (Oct 26): DBS Group Research is maintaining Parkway Life REIT (PLife REIT) at “buy” given the REIT offers one of the strongest earnings visibility profiles among S-REITs, with a weighted average lease expiry of close to nine years.

See: Parkway Life REIT declares 3Q DPU of 3.23 cents, down 4.1% on absence of one-off gain

In a Friday report, lead analyst Rachel Tan believes that PLife REIT will be able to deliver steady growth in returns through its three-pronged growth plans of asset recycling, new markets and potential acquisition pipeline from its sponsor while maintaining its defensive stance in expansion.

According to Tan, PLife REIT has a gearing of 38% with debt headroom of $241 million, assuming 45% gearing. In addition, PLife REIT has benefitted from lower interest rates in Japan following the renewal of interest rate hedge, with cost of debt now below 1%.

“We maintain our ‘buy’ rating but lowered its target price to $3.10 from $3.15 as we roll forward our DCF valuation,” says Tan.

Year to date, units in PLife REIT are down 11.7% to $2.63, giving it an FY19F yield of 4.9%.

US sanctions on Huawei could backfire

SINGAPORE (May 27): It was only to have been expected. After nearly a year of pressure that failed to stop Huawei Technologies Co’s expansion -- especially in the rollout of the next generation 5G wireless network globally -- in its tracks, US President Donald Trump signed an executive order effectively barring American firms from doing business with the Chinese telecommunications equipment company. The inclusion of Huawei on the US Department of Commerce’s Bureau of Industry and Security’s (BIS) Entity List means that companies would need to apply for a waiver to supply goods with 25....

Annica chairman Ong quits just as $33 mil goes missing at his law firm JLC

SINGAPORE (May 27): Jeffrey Ong, managing partner of law firm JLC Advisors, may have given instructions to pay out a sum of $33.2 million held in escrow by his firm for a client, Allied Technologies. According to Allied’s statement filed with Singapore Exchange on May 23, the payment may have been “unauthorised”, citing a letter it received from JLC on May 22. Allied’s statement did not specify who the payment was made to. Ong also abruptly resigned as non-executive chairman of Annica Holdings on May 20. In a May 22 filing with SGX, Annica CEO Sandra Liz Hon Ai Ling said Ong resigne....

SGX RegCo sees targeted approach in enforcement, more powerful market discipline

SINGAPORE (May 27): Tan Boon Gin, CEO of stock exchange regulator Singapore Exchange Regulation, says the market can expect a stronger regulatory presence. “You will see a series of enforcement cases coming up quite soon,” he tells The Edge Singapore. Tan’s assertion comes amid significant changes in the market as sentiment remains lacklustre and investors’ expectations change. The local stock market has gone through significant upheaval, not least because of the penny stock crash in 2013 that wiped out some $8 billion in value from the market. The event dented investor sentiment, a....