Stock Name: PLife REIT
Company Name: PARKWAYLIFE REIT
DMG & Partners Research in an Aug 10 research report says: "PREIT's 2Q11 DPU of 2.37 cents (+13.4% y-o-y) represents 25% of our FY2011 estimates. Net property income grew 13.3% y-o-y to $19.6 million, on the back of (i) added contribution from Japanese properties acquired in 3Q10 and 1Q11, and (ii) higher y-o-y rental from Singapore properties.
"Rental from its Singapore properties is set to grow by at least 5.3% in the 5th year of the lease, which starts from mid-3QFY11. PREIT is currently trading at 5.3% yield. Taking into consideration the lower cost of debt and the higher rental growth rate from its Singapore properties (we had previously projected a 2% growth), we adjusted our FY2011F and FY2012F DPU by +5.5% and +6.5% respectively.
"Target price is raised to $2.07 (from $1.83), a 14% upside from current levels. UPGRADE TO BUY."
Company Name: PARKWAYLIFE REIT
| Research House: DMG | Price Call: BUY | Target Price: 2.07 |
DMG & Partners Research in an Aug 10 research report says: "PREIT's 2Q11 DPU of 2.37 cents (+13.4% y-o-y) represents 25% of our FY2011 estimates. Net property income grew 13.3% y-o-y to $19.6 million, on the back of (i) added contribution from Japanese properties acquired in 3Q10 and 1Q11, and (ii) higher y-o-y rental from Singapore properties.
"Rental from its Singapore properties is set to grow by at least 5.3% in the 5th year of the lease, which starts from mid-3QFY11. PREIT is currently trading at 5.3% yield. Taking into consideration the lower cost of debt and the higher rental growth rate from its Singapore properties (we had previously projected a 2% growth), we adjusted our FY2011F and FY2012F DPU by +5.5% and +6.5% respectively.
"Target price is raised to $2.07 (from $1.83), a 14% upside from current levels. UPGRADE TO BUY."
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