Brokers' take

Parkway Life Reit | Add

April 29 close: S$2.42

Target price: S$2.60

CIMB Research, April 29

PARKWAY Life Reit's (P-Reit) Q1 FY15 distribution per unit (DPU) was in line at 23 per cent of our full-year estimate. Recurring income grew 0.7 per cent year on year despite the divestments of seven Japan nursing homes while disposal gains grew the DPU by 14 per cent year on year. We like management's recent capital-recycling initiative, which created value and improved the portfolio in terms of tenant concentration and weighted average lease expiry. Maintain our "add" rating, with an unchanged dividend discount model-based target pri…