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Parkway Life Real Estate Investment Trust (SG:C2PU)
:C2PU

Parkway Life Real Estate Investment (C2PU) AI Stock Analysis

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Parkway Life Real Estate Investment

(OTC:C2PU)

Rating:67Neutral
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 (C2PU) vs. iShares MSCI Singapore ETF (EWS)

Parkway Life Real Estate Investment Business Overview & Revenue Model

Company DescriptionParkway 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 MoneyParkway 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
84
Very Positive
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
75
Positive
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
78
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
145.49M153.49M147.47M129.97M120.70M120.89M
Gross Profit
112.64M126.74M124.59M121.87M111.23M112.53M
EBIT
114.48M131.41M121.58M49.16M335.65M102.55M
EBITDA
-3.29M113.88M121.20M112.14M344.92M101.73M
Net Income Common Stockholders
104.88M95.04M100.47M41.14M331.88M87.22M
Balance SheetCash, Cash Equivalents and Short-Term Investments
57.07M29.47M28.50M40.01M25.79M22.66M
Total Assets
2.32B2.55B2.33B2.34B2.35B2.07B
Total Debt
817.25M886.11M828.47M851.89M828.01M793.65M
Net Debt
760.18M856.64M799.97M811.88M802.21M770.99M
Total Liabilities
894.88M981.20M919.58M931.66M910.43M883.36M
Stockholders Equity
1.42B1.57B1.41B1.41B1.43B1.18B
Cash FlowFree Cash Flow
0.0046.68M77.65M30.74M78.17M85.73M
Operating Cash Flow
0.0095.79M108.69M94.63M89.86M90.31M
Investing Cash Flow
0.00-239.93M-49.56M-125.18M-74.99M-28.57M
Financing Cash Flow
0.00147.35M-67.92M47.75M-9.98M-61.46M

Parkway Life Real Estate Investment Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4.05
Price Trends
50DMA
4.13
Negative
100DMA
4.02
Positive
200DMA
3.90
Positive
Market Momentum
MACD
-0.03
Positive
RSI
45.96
Neutral
STOCH
48.72
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
S$2.64B26.116.39%2.35%-0.99%-6.50%
61
Neutral
$2.86B10.960.41%6.08%5.73%-21.25%
$1.43B-6.38%0.50%
$2.55B13.712.80%3.65%
$2.16B34.7211.74%1.24%
$2.59B30.531.86%5.49%
55
Neutral
S$1.57B8.06-1.97%7.93%-1.51%-135.46%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:C2PU
Parkway Life Real Estate Investment
4.05
0.55
15.81%
CGIUF
ESR-REIT
1.68
-0.26
-13.40%
FSRPF
Frasers Property
0.69
0.13
23.21%
SPHEF
Paragon REIT
2.80
0.04
1.45%
SURVF
Suntec Real Estate Investment
0.88
0.14
18.92%
SG:TS0U
OUE Commercial Real Estate Investment Trust
0.28
0.03
12.00%

Parkway Life Real Estate Investment Corporate Events

Parkway Life REIT Holds Annual General Meeting to Discuss Performance and Strategies
May 19, 2025

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
May 16, 2025

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
Apr 30, 2025

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
Apr 25, 2025

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
Apr 21, 2025

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
Apr 4, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.