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P-Life's mandate is to invest in income-producing real estate and / or real estate-related assets in the Asia-Pacific region (including S'pore) that are used primarily for healthcare and / or healthcare-related purposes (including but are not limited to, hospitals, healthcare facilities and real estate and / or real estate assets used in connection with healthcare research, education, and the manufacture or storage of drugs, medicine and other healthcare goods and services).
P-Life is one of the more attractive S'pore Reits. At $1.20, P-Life offers 5.3% yield based on management's DPU target of $0.0625 for 2008, and 11% discount to NTA.
Looks like this REIT really needs to visit her own hospitals to ifns out what's wrong with her... limping all the way down since listing.
@ current price, based on DBS est 07 yield ~ 6.1 cts, yield @ 5.6%
Today touched lowest point (1.16) since IPO. Trend wise looks bad... hope 1.17 can hold. @ 1.17, based on DBS est DPU of 6.1cts, yield is 5.2%.
UOB KayHian
An oasis in sea of turbulence
Parkway Life REIT invests in income-producing real estate assets in the Asia Pacific region used primarily for healthcare and related purposes. They include hospitals, ambulatory surgery centres, primary clinics, medical office building, step-down care facilities, research & development facilities and pharmaceutical facilities in China, India, South East Asia and the Middle East.
The initial portfolio comprising Mount Elizabeth Hospital, Gleneagles Hospital and East Shore Hospital represents the largest portfolio of private hospitals in Singapore. Mount Elizabeth Hospital and Gleneagles Hospital, in particular, are located in the heart of prime Orchard Road shopping district.
Riding on growing demand for healthcare.
Parkway Holdings will lease the three hospitals from Parkway Life REIT for an initial term of 15 years with an option to extend for another 15 years. The annual rental for each of the properties comprises a base rent (S$30m) and a variable rent (3.8% of adjusted hospital revenue). The variable rent component is linked to adjusted hospital revenue, allowing unitholders to participate in growth of the healthcare industry.Singapore is a healthcare-hub in Asia.
Parkway Life REIT also benefits from the growth in medical tourism. International patient inflow in Singapore has increased at CAGR of 35.4% from 98,700 in 2001 to 448,800 in 2006 (source:
The population in Singapore is ageing. The life expectancy for male has increase from 76 years in 2000 to 78 years in 2006. The life expectancy for female has correspondingly increased from 80 years to 81.8 years (source: Ministry of Health). The proportion of people aged 65 or older is projected to increase from 6.9% of total population in 2006 to 18.9% by 2030. Already, Parkway Holdings?s revenue per patient day has increased at CAGR of 16.2% from S$1,258 in 2004 to S$1,699 in 2006.MOH and Frost & Sullivan). Singapore aims to attract 1m foreign patient visitors by year 2012.Acquisition growth strategy.
Parkway Life REIT will source and acquire assets in the Asia Pacific region, which are distribution yield accretive and have potential for future earnings and capital growth. Parkway Life REIT will also seek to improve portfolio diversification and asset quality. It is already evaluating opportunities for acquisitions in Singapore, Malaysia, India and China. Parkway Life REIT has been granted the right of first refusal by Parkway Holdings over future sale of healthcare and related facilities located in the Asia Pacific region. Parkway Holdings operates 15 hospitals in Singapore, Brunei, India and Malaysia. It also operates an ambulatory surgical centre and clinics in China and an aesthetics clinic in Vietnam. These assets provide a pipeline of potential future acquisitions. Parkway Life REIT will also identify greenfield sites for development of hospital and healthcare-related facilities. It also seeks to acquire third party hospital and healthcare-related properties.Parkway Life REIT offers attractive yield.
Parkway Life?s yield is comparable to hospitality REITs such as CDL Hospitality Trust and Ascott REIT. Its yield is nevertheless much more attractive when compared to REITs investing in commercial, retail or industrial properties.REITS are probably all down - high price REITS have shortists coming in
REITS investors are also panicky as their funds are for retirement
Thats the trouble with REITS
They need motivation to keep their stocks as said in TV news
In economic slow down, restuarants and retail shops will close shop. Import, exports and tourism will decline.
But if need surgery, still have to go hospital. The different may only be which class and whether public or private hospital. For those middle income and pampered one, they will choose private hospital.
So in economic slow down, hospital will still have constant income.
it true that hospital dun close down easily, but if u look at the rates of Class A wards as well as as its occupancy levels during the 97-98 period, u'll see a decline.
pple will hold back on yearly checkups, elective surgery, comestic surgery etc.
are they stablising the price by throwing the stocks with huge lots.. what's in their minds? strange..
not vested.
| 14:39:00 | 1.18 | 300,000 | Sell Down |
| 14:38:49 | 1.18 | 100,000 | Sell Down |
| 14:38:41 | 1.18 | 100,000 | Sell Down |
| 14:38:34 | 1.18 | 50,000 | Sell Down |
| 14:38:31 | 1.18 | 20,000 | Sell Down |
| 14:38:24 | 1.18 | 150,000 | Sell Down |
| 14:38:22 | 1.18 | 800,000 | Sell Down |
| 14:38:21 | 1.18 | 10,000 | Sell Down |
| 14:38:15 | 1.18 | 1,100,000 | Sell Down |
| 14:38:12 | 1.18 | 100,000 | Sell Down |
| 14:38:05 | 1.19 | 1,000 | Buy Up |
| 14:37:58 | 1.19 | 10,000 | Buy Up |
| 14:37:08 | 1.19 | 5,000 | Buy Up |
| 14:36:30 | 1.19 | 605,000 | Sell Down |
| 14:36:23 | 1.19 | 2,426,000 | Sell Down |
UBS AG, acting through its business group, UBS Investment Bank, as stabilising manager designated in connection with the Offering, announced that it has purchased a total of 13,032,000 Units at a price range of S$1.19 to S$1.27 per Unit on 23 August, 2007.
Goldman Sachs
REITS: Defensive with increasingly attractive valuations
We reiterate our positive view on Singapore REITs and recommend investors to buy
We note that while REITs are positioned to be relatively defensive equities, the GS S-REIT Index has fallen by 11.8% since July, which is only slightly less than the decline in the Singapore property stock index of 15.3%. We have seen share prices of certain REITs and developers adversely impacted by similar magnitudes during the global credit crunch. With falling REIT prices, the trend of yield compression for REITs has reversed. We argue that REITs should not be sold down in the same manner as developer stocks given their lower risk profile. We saw REIT prices recently corrected even though our outlook on growth for REITs via positive rental reversions remains unchanged. Even assuming an extreme scenario, where the Singapore economy suffers a down turn (which we consider very unlikely), we note that: (1) REITs have secured leases, typically with 3 year tenures; (2) tenants tend to default on lease payments as a matter of last resort only; and (3) market rents are substantially higher than passing rents in segments like CBD office property. While we value REITs using DCF, as a cross check, we look at price to RNAV, which captures how much investors are paying for the underlying real estate assets. We note that office and retail REITs are trading at close to or at discounts to RNAV thereby reinforcing our positive take on these stocks. We see the current market providing a good entry point into REITs; yield spreads with the 10-yr bond have expanded to 200bp from 100bp in July, even though physical property market fundamentals remain sound (see Exhibit 3). We like REITs for their overlooked defensive characteristics and their leverage to the Singapore economic growth story.
What is the risk to the acquisition pipeline posed by credit market volatility?
While the organic growth driver for REITs continues to power ahead, we have near-term concerns on the acquisition growth driver. When we launched our REIT coverage in January, we forecasted for the 9 REITs we cover to make S$15bn worth of acquisitions within a 3-year time frame thereby boosting portfolio sizes by around 75%. Based on announced acquisitions, we note that YTD, our 9 REITs have made S$3.9bn worth of acquisitions, which is 27% of our 3-year acquisition target. Going forward, we continue to see Singapore REITs growing via acquisitions so as to stand out in an increasingly crowded REIT market. We note that amidst the global credit crunch, REITs may, in the near-to-medium term, find: (1) greater difficulty in accessing capital to finance transactions; and (2) higher costs of equity and debt. We estimate that compared to June, the borrowing costs for REITs would have gone up by around 50bp such that borrowing costs today from the domestic lenders may be closer to 4%. We explicitly factor in the near-term greater uncertainty of support and higher cost of funding from credit markets into lowering the contribution from the acquisition growth driver for our REITs. While we are confident in REITs growing to meet their acquisition targets over the next 2-3 years, we lower the amount of acquisition premium we use in setting the respective target prices for our 9 REITs due to greater uncertainty relating to execution on growth via acquisitions. The acquisition premium is an adjustment factor we use to reflect our confidence in the company making its targeted level of acquisitions at the estimated yield accretion. By paying out all or most of its distributable income, REITs need to tap capital markets to finance acquisitions. Current market volatility will impact the near-term ability of REITs to access capital market funding. Nonetheless, we see REITs as quality borrowers having the necessary debt capacity and expect that equity markets to be willing to fund good acquisitions.
in the prevailing choppy equity markets. We believe the market is under-appreciating the defensive qualities and overstating risks. REITs were sold down recently despite no change in the positive fundamentals for the Singapore property market or government risk free rates. In a flight to quality environment we like REITs for their: (i) low gearing, typically 40%; (ii) income payout, often of 100%; (iii) secured leases; and (iv) limited development risk. Given reduced risk tolerance, we favor those REITs: (a) with strong organic growth; and (b) trading near or below RNAV. While we see challenging conditions for REITs to access capital market funding for acquisitions, we believe the risk is overstated and we note that base case valuations are attractive.giantlow. This is just my point of view, and also many ppl see it the same way.
Singaporean are getting more particular about branding, even in going hospital or specialists.
If you have been to Mt. E, GlenE, you will notice how fully pack they are.
And also, the super rich in the region, especially from Indo, Malaysia, Viet or even China come regularly to these branded hospital for checkups.
Or you can simply go ask around your lady's colleague, how many actually want to go KK and how many want to go GlenE for giving birth. You will be suprise. You may argue that its good time now, but in bad time, we only hear restuarants closing down, but not hospitals.
Pinnacle,
I disagree with you saying that this counter is not going to be badly affected by market or economic condition because in good time or bad time, people will still get sick.
That is akin to saying that restuarants are not going to be affected too becos pple will need to eat.
PLife Reit is providing more upmarket healthcare, it will definitely be adversely affected in a downturn.
Not invested. Thinking whether worth. However, would like to
read the IPO prospectus. However, tried downloading the attachment from SGX
website, seems the PDF document is corrupted. Can some provide me copy please?
Thanks in advance