Parkway Life REIT

Parkway Life REIT: Maiden divestment of 7 Japanese nursing homes for a total consideration of $88.3m and an expected divestment gain of $12.3m. Divestment proceeds are likely to be used for further yield accretive acquisitions as part of PREIT’s asset recycling initiative. While CIMB says FY15-16 DPUs and DDM-based TP drops by ~4% as a result, it is likely temporary and should reverse as yield-accretive acquisitions comes into the picture. CIMB likes PREIT’s stable underlying portfolio, and maintains Add with TP of $2.53