PLife REIT - Parkway Life REIT target lifted to $1.91 by CIMB

Stock Name: PLife REIT
Company Name: PARKWAYLIFE REIT
Research House: CIMB

CIMB lifts Parkway Life REIT (C2PU.SG) target price to $1.91 from $1.57 after increasing 2011-2012 DPU estimates by 4.0%-20% to reflect assumptions for additional $200 million in acquisitions next year, lower cost of debt, says Dow Jones.



CIMB notes REIT’s unique rental escalation clause, pegged at inflation rate +1.0%, bodes well for its Singapore portfolio: “With the Singapore economy expected to expand 13%-15% this year, inflation risks remain. What’s more, food prices may be higher in 2H10 as a result of inclement weather.”



Keeps Outperform call. REIT +0.7% at $1.55.