P-Life REIT: (The Edge) Eyes new mkts and consolidating Jap business. Note that stock has gained 12% Ytd vs STI’s decline of 12.5%. Current portfolio now worth abt 1.3b, almost dbl that when it listed in 2007.
Grp intends to slow down activities in Jap, after an aggressive acquisition spree in the last 2 yrs, setting its eyes on Msia and Australia where it intends to acquire hospitals and medical Centres rather than nursing homes. Long-term goal is to generate 65% of rev from hospitals, 30% from nursing home and 5% from manufacturing facilities.
Add that with entry of entry of Knazanah via parkway holdings and the merger of it with Pantai grp, sponsor has 16 hospitals across Asia and also owns Parkway Novena, while recent entry of Mitui in Integrated Healthcare Holdings bodes well for grp’s overall structure. We note that DPU for REIT 9mth was at 7.13c, representing an annualized yield of 5.3%. Grp’s gearing of 37% enables grp to take on debt of another $260m. After grps YTD resilience to mkts’ decline most houses have a neutral call on grp, with UBS at $1.90 and DBSV at $1.96.
No comments:
Post a Comment