Parkway Life REIT

Parkway Life REIT: Results in line with expectations; 4QFY13 DPU and distributable income grew 4.5% to 2.82¢ and $17m respectively. Gross revenue rose 3.1% to $24.7m while NPI improved 3.4% to $24.7m, on the back of the acquisitions of seven nursing homes in Japan in Jul and Sep '13 and higher rent from Singapore properties, offset by the yen depreciation. Occupancy is full (except M’sia carpark), with a WALE (by gross revenue) of 10.6 years. Aggregate leverage lowered 2.2 ppts to 33.0% with cost of debt of 1.47%. NAV at end Dec was $1.63. Latest broker recommendations as follows: UOB Kay Hian maintains Hold with $2.47 TP CIMB maintains Hold with $2.37 TP