Tuesday, April 7, 2015

Parkway REIT

Parkway Reit. The only stock I own which still gives out hardcopies of annual report. (as of reports i received to date).

They own properties in SG and JP, and very few in M'sia to lease to nursing homes & hospitals such as Gleneagles & Mount E. ( Leasehold abt 60 yrs). Properties in Japan are mostly freehold.

Even yen weakened quite alot last year, they managed to register a realised foreign exchange gains despite much revenues derived from Japan. They also divested some properties last year with some capital gains too.

At current price,the div yield~ 4.9%, which is the lowest among all S-Reits. Healthcare Reits are defensive relative to other reits and I don't mind foregoing 1~2% of div for something more stable. Their distribtion has been increasing steadily too :)

It's important to look into the future and see if the company we are investing are still relevant. Considering the increase no. of population in SG and ageing population in SG and Japan, I expect more demand for healthcare services. Hence, the healthcare properties in someway are relevant and reasonable to expect averagely high occupancy for the years to come.

In the coming months, I dont expect the stock price to appreciate much as their p/b=1.48 unless their properties are revalued and revised upwards.

(Update 7/3/2015: I received my Thai Bev in hardcopy too :) )

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