Tuesday, September 7, 2010

Parkway Life Reit

Parkway Life Reit: CIMB keeps Outperform call & lifts target price to $1.91 from $1.57 after increasing 2011-2012 DPU estimates by 4-20% to reflect additional $200m in acquisitions next year & lower cost of debt. Adds Spore assets set to benefit from rising inflation, asset enhancements & overseas acqns. With the Spore economy expected to expand 13-15% this year, PLife’s unique rental escalation clause, pegged at CPI+1%, bodes well for its Spore portfolio.

Reit offers 5.4% yield in FY10, rising to 6.4% in FY11 & 7.4% in FY12.

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