Parkway Life Real Estate Investment, the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Lock Mun Yee from CGS-CIMB reiterated a Buy rating on the stock and has a S$4.93 price target.
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Lock Mun Yee has given his Buy rating due to a combination of factors including Parkway Life REIT’s strong financial performance and strategic growth initiatives. The REIT reported a notable increase in revenue and net property income for the first half of 2025, driven by acquisitions in France and Japan, as well as improvements in its Singapore lease agreements. This growth was further supported by effective foreign exchange hedges and tax savings from its French portfolio, which are expected to enhance future distribution income.
Additionally, Parkway Life REIT maintains a robust balance sheet with a gearing ratio of 35.4% and a stable interest cost, with most of its interest rate exposure hedged into fixed rates. The REIT’s strategy to unlock value from non-core assets and reinvest in strategic assets, particularly in France, while maintaining its core market in Singapore, underpins its potential for sustained growth. These factors, coupled with its defensive income structure and potential for accretive acquisitions, contribute to the positive outlook and Buy rating from Lock Mun Yee.
According to TipRanks, Mun Yee is a 3-star analyst with an average return of 3.6% and a 55.93% success rate. Mun Yee covers the Real Estate sector, focusing on stocks such as CapitaLand Ascendas REIT, Sasseur Real Estate Investment Trust, and Lendlease Global Commercial REIT.
In another report released today, DBS also maintained a Buy rating on the stock with a S$4.75 price target.