Parkway Life Real Estate Investment (C2PU) AI Stock Analysis

• Market Cap: S$2.64B
• Dividend Yield: 2.35%
• Average Volume (3M): 827.93K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.32
• Revenue Growth: -0.99%
• EPS Growth: -6.50%
• Country: SG
• Employees: 23
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.15
• Shares Outstanding: 652,420,400
• 10 Day Avg. Volume: 1,101,160
• 30 Day Avg. Volume: 827,930
• PEG Ratio: -0.63
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 74.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$1.69
• Price Target Upside: -58.27% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: S$4.50 ▲(11.11%Upside)

The overall stock score is primarily driven by strong financial performance, characterized by robust profitability and efficient cash flow management. The technical analysis provides mixed signals, with the stock trading below short-term moving averages but showing longer-term strength. Valuation is moderate, with a high P/E ratio balanced by an attractive dividend yield. The lack of earnings call and corporate events data does not impact the score.

Positive Factors

Earnings Growth

Successful asset recycling activities in Japan have been delivering steady growth for PLife REIT while its recent acquisition of a portfolio of French nursing homes accelerates near-term growth.

Strategic Expansion

The acquisition of 11 nursing homes in France represents a strategic entry into a third core market, providing an NPI yield of 6.5%.

Valuation and Yield

Attractive re-entry point: recent correction in share price implies an attractive forward yield positioning the stock for a rebound.

Negative Factors

Currency Risks

Currency risks. PLife REIT derives c.40% of its earnings from healthcare assets in Japan and is exposed to foreign exchange volatility.

Financial Costs

Finance costs have increased 14.9% due to funding of capex for Project Renaissance and new acquisitions as well as higher interest costs from SGD-denominated debts.

Parkway Life Real Estate Investment Business Overview & Revenue Model

Company Description

Parkway Life Real Estate Investment Trust ("PLife REIT") is one of Asia's largest listed healthcare REITs by asset size. It invests in income-producing real estate and real estate related assets that are used primarily for healthcare and healthcare-related purposes (including but are not limited to, hospitals, healthcare facilities and real estate and/or real estate assets used in connection with healthcare research, education, and the manufacture or storage of drugs, medicine and other healthcare goods and devices). PLife REIT owns a well-diversified portfolio of 54 properties located in the Asia Pacific region, with a total portfolio size of approximately S$2.02 billion3 as at 31 December 2020. It owns the largest portfolio of strategically-located private hospitals in Singapore comprising Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital. In addition, it has 50 assets of high quality nursing home and care facility properties in various prefectures of Japan. It also owns strata-titled units/lots in MOB Specialist Clinics Kuala Lumpur in Malaysia.

How the Company Makes Money

Parkway Life REIT generates revenue primarily through the rental income from its portfolio of healthcare and healthcare-related properties. The company leases its properties to various healthcare operators, who pay regular rental fees under long-term lease agreements. This rental income forms the core of the REIT's revenue stream. Additionally, Parkway Life REIT may engage in property development or enhancement activities to increase the value of its assets, thereby potentially increasing rental income over time. The REIT may also benefit from periodic revaluation gains on its properties, contributing to its overall earnings. Strategic partnerships with healthcare operators and investors further enhance its ability to source and manage high-quality assets, ensuring a stable and sustainable revenue flow.

Parkway Life Real Estate Investment Financial Statement Overview

Summary

Parkway Life Real Estate Investment exhibits a strong financial position with robust profitability and efficient cash flow management. While revenue growth has faced challenges, the company maintains healthy margins and a balanced leverage strategy, positioning it well within the REIT - Healthcare Facilities industry.

Income Statement

The company demonstrates strong profitability with a consistent gross profit margin. However, while the net profit margin is healthy, recent revenue growth is slightly negative, indicating potential challenges in maintaining top-line growth. EBIT margin is unavailable, but EBITDA margin remains robust, reflecting efficient operations.

Balance Sheet

The balance sheet presents a stable equity ratio, indicating a solid equity position relative to total assets. The debt-to-equity ratio is moderate, reflecting a balanced approach to leverage. Return on equity is strong, suggesting effective use of equity to generate profits.

Cash Flow

Operating cash flow remains strong, supporting net income well. However, free cash flow growth has been inconsistent, with a decline in the most recent year. The free cash flow to net income ratio is solid, indicating good cash conversion from earnings.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
145.49M	153.49M	147.47M	129.97M	120.70M	120.89M
	Gross Profit
112.64M	126.74M	124.59M	121.87M	111.23M	112.53M
	EBIT
114.48M	131.41M	121.58M	49.16M	335.65M	102.55M
	EBITDA
-3.29M	113.88M	121.20M	112.14M	344.92M	101.73M
	Net Income Common Stockholders
104.88M	95.04M	100.47M	41.14M	331.88M	87.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
57.07M	29.47M	28.50M	40.01M	25.79M	22.66M
	Total Assets
2.32B	2.55B	2.33B	2.34B	2.35B	2.07B
	Total Debt
817.25M	886.11M	828.47M	851.89M	828.01M	793.65M
	Net Debt
760.18M	856.64M	799.97M	811.88M	802.21M	770.99M
	Total Liabilities
894.88M	981.20M	919.58M	931.66M	910.43M	883.36M
	Stockholders Equity
1.42B	1.57B	1.41B	1.41B	1.43B	1.18B
Cash Flow		Free Cash Flow
0.00	46.68M	77.65M	30.74M	78.17M	85.73M
	Operating Cash Flow
0.00	95.79M	108.69M	94.63M	89.86M	90.31M
	Investing Cash Flow
0.00	-239.93M	-49.56M	-125.18M	-74.99M	-28.57M
	Financing Cash Flow
0.00	147.35M	-67.92M	47.75M	-9.98M	-61.46M

Parkway Life Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:C2PU, the sentiment is Neutral. The current price of 4.05 is below the 20-day moving average (MA) of 4.06, below the 50-day MA of 4.13, and above the 200-day MA of 3.90, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 48.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:C2PU.

Parkway Life Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
C2PU	67 Neutral	S$2.64B	26.11	6.39%	2.35%	-0.99%	-6.50%
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
CGIUF		$1.43B	―	-6.38%	0.50%	―	―
FSRPF		$2.55B	13.71	2.80%	3.65%	―	―
SPHEF		$2.16B	34.72	11.74%	1.24%	―	―
SURVF		$2.59B	30.53	1.86%	5.49%	―	―
TS0U	55 Neutral	S$1.57B	8.06	-1.97%	7.93%	-1.51%	-135.46%

Parkway Life Real Estate Investment Corporate Events

Parkway Life REIT Holds Annual General Meeting to Discuss Performance and Strategies

Parkway Life REIT held its Annual General Meeting on April 21, 2025, with key figures from the company and its partners in attendance. The meeting was led by Mr. Ho Kian Guan, the Independent Director and Chairman of the Board. The event served as a platform for the management to engage with unitholders and discuss the company’s performance and future strategies. This meeting is crucial for maintaining transparency and trust with stakeholders, ensuring that they are informed about the company’s operations and strategic direction.

The most recent analyst rating on (SG:C2PU) stock is a Hold with a S$4.00 price target. To see the full list of analyst forecasts on Parkway Life Real Estate Investment stock, see the SG:C2PU Stock Forecast page.

PLife REIT Issues New Units to Manager for Fee Payment

Parkway Life Real Estate Investment Trust (PLife REIT) has announced the issuance of 31,865 new units to its manager, Parkway Trust Management Limited (PTM), as part payment for management fees for the first quarter of 2025. The units were issued at an average price of S$3.93 per unit, determined by the volume weighted average price on the SGX-ST. This issuance increases the total units in PLife REIT to 652,420,408, with PTM holding 1,396,208 units. The move reflects PLife REIT’s ongoing strategy to manage its financial obligations through equity, potentially impacting its financial structure and stakeholder interests.

The most recent analyst rating on (SG:C2PU) stock is a Hold with a S$4.00 price target. To see the full list of analyst forecasts on Parkway Life Real Estate Investment stock, see the SG:C2PU Stock Forecast page.

Parkway Life REIT Announces Change in Company Secretary

Parkway Life Real Estate Investment Trust has announced a change in its company secretary, with Ms. Chan Wan Mei resigning and Ms. Joannah P. Resol being appointed as her successor, effective April 30, 2025. This change reflects the company’s ongoing adjustments in its management team, which could have implications for its operational continuity and stakeholder relations.

Parkway Life REIT Amends Trust Deed Following AGM Approval

Parkway Life REIT has announced the approval of an extraordinary resolution at its annual general meeting, leading to an amendment of its trust deed. The amendment, formalized through a seventh supplemental deed with HSBC Institutional Trust Services, changes the definition of ‘Distribution Date,’ potentially impacting the timing and management of distributions to unitholders.

Parkway Life REIT Exits Malaysian Market with Strategic Divestment

Parkway Life REIT has announced the divestment of its strata units and lots at MOB Specialist Clinics in Kuala Lumpur, Malaysia, for RM20.09 million, which is approximately 25.6% higher than its original purchase price. This divestment aligns with Parkway Life REIT’s strategic asset recycling strategy, allowing the company to exit the Malaysian market as the property was its sole investment in the country, contributing only 0.2% to its asset value.

Parkway Life REIT Manager Disposes Units to Employees

Parkway Trust Management Limited, the manager of Parkway Life REIT, has announced the disposal of 147,300 units in Parkway Life REIT to eligible employees under the company’s Long Term Incentive Plan. This transaction reflects the company’s commitment to rewarding its employees and may impact the overall unit holding structure, as PTM now holds 1,364,343 units in the trust.