Parkway Life REIT's Revenue May Benefit from Hospital Outperformance

Dow Jones
08/04

0609 GMT - Parkway Life REIT's revenue could benefit from continued outperformance at two of its hospitals, says DBS Group Research's Tabitha Foo in a note. The real-estate investment trust shifted to a revenue-sharing model with the two hospitals, which delivered a pleasant surprise to the REIT's top line through a 0.8 million Singapore dollar uplift, the analyst says. She anticipates that a third hospital, Mount Elizabeth, could also transition to the revenue-sharing model after it completes its enhancements. This could be a key catalyst for Parkway Life's stock, as Mount Elizabeth is the largest contributor to the REIT's Singapore portfolio, she says. DBS retains its buy rating and S$4.75 target price, citing attractive valuations. Units add 0.5% to S$4.24.

 

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