Parkway Life REIT

Parkway Life REIT: CIMB downgrades to Neutral from Outperform but ups TP to $2.11 from $1.96 on a co visit. Mgmt entered Msia through a small $6.5m acquisition completed in Aug 2012. House expects further acquisitions of Msia hospitals and believes total of $200m of acquisitions will provide DPU uplift of 0.4%. 2-4% min FPU growth is estimated on CPI-pegged leases of Sg hospitals (60% of rev) alone. Plans for Japan include AEI collaborations with the operator and appears to be a compelling strat for LT growth. House continues to like co for its defensiveness and see it as a good yield-play complement to IHH’s growth story (IHH owns 36% equity interest in Plife REIT), but at 30% premium over book and yield compression to 5%, upside appears limited.