Parkway Life Real Estate Investment Trust (SGX:C2PU) - Share price, News & Analysis

C2PU fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	5/6
Financial Health	2/6
Dividends	5/6

C2PU Stock Overview

Parkway Life Real Estate Investment Trust (“PLife REIT”) is one of Asia’s largest listed healthcare REITs by asset size.

Rewards

PE ratio (9.2x) is below the SG market (11.9x)

Earnings grew by 225.3% over the past year

Pays a reliable dividend of 2.85%

Risk Analysis

Earnings are forecast to decline by an average of 9.7% per year for the next 3 years

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Parkway Life Real Estate Investment Trust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Parkway Life Real Estate Investment Trust
Historical stock prices
Current Share Price	S$4.94
52 Week High	S$5.22
52 Week Low	S$4.24
Beta	0.36
1 Month Change	1.86%
3 Month Change	9.53%
1 Year Change	12.78%
3 Year Change	68.60%
5 Year Change	89.27%
Change since IPO	315.13%

Shareholder Returns

	C2PU	SG REITs	SG Market
7D	2.3%	0.3%	0.6%
1Y	12.8%	-2.6%	-1.2%

Return vs Industry: C2PU exceeded the SG REITs industry which returned -2.6% over the past year.

Return vs Market: C2PU exceeded the SG Market which returned -0.3% over the past year.

Price Volatility

Is C2PU's price volatile compared to industry and market?
C2PU volatility
C2PU Average Weekly Movement	3.0%
REITs Industry Average Movement	2.9%
Market Average Movement	5.1%
10% most volatile stocks in SG Market	12.1%
10% least volatile stocks in SG Market	2.4%

Stable Share Price: C2PU is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: C2PU's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2007	n/a	Yean Chau Yong	https://www.plifereit.com

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.

Parkway Life Real Estate Investment Trust Fundamentals Summary

How do Parkway Life Real Estate Investment Trust's earnings and revenue compare to its market cap?
C2PU fundamental statistics
Market Cap	S$2.99b
Earnings (TTM)	S$326.18m
Revenue (TTM)	S$121.38m

9.2x

P/E Ratio

24.6x

P/S Ratio

Is C2PU overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
C2PU income statement (TTM)
Revenue	S$121.38m
Cost of Revenue	S$22.43m
Gross Profit	S$98.95m
Other Expenses	-S$227.23m
Earnings	S$326.18m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.54
Gross Margin	81.52%
Net Profit Margin	268.73%
Debt/Equity Ratio	57.7%

How did C2PU perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

95%

Payout Ratio

Valuation

Is Parkway Life Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

9.16x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: C2PU (SGD4.94) is trading above our estimate of fair value (SGD4.6)

Significantly Below Fair Value: C2PU is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: C2PU is good value based on its PE Ratio (9.2x) compared to the SG REITs industry average (13.8x).

PE vs Market: C2PU is good value based on its PE Ratio (9.2x) compared to the SG market (11.9x).

Price to Earnings Growth Ratio

PEG Ratio: C2PU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: C2PU is overvalued based on its PB Ratio (2.1x) compared to the SG REITs industry average (0.9x).

Future Growth

How is Parkway Life Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-9.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: C2PU's earnings are forecast to decline over the next 3 years (-9.7% per year).

Earnings vs Market: C2PU's earnings are forecast to decline over the next 3 years (-9.7% per year).

High Growth Earnings: C2PU's earnings are forecast to decline over the next 3 years.

Revenue vs Market: C2PU's revenue (2.8% per year) is forecast to grow slower than the SG market (7.7% per year).

High Growth Revenue: C2PU's revenue (2.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: C2PU's Return on Equity is forecast to be low in 3 years time (8.8%).

Past Performance

How has Parkway Life Real Estate Investment Trust performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

21.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: C2PU has a large one-off gain of SGD238.6M impacting its March 31 2022 financial results.

Growing Profit Margin: C2PU's current net profit margins are higher than last year (82.8%).

Past Earnings Growth Analysis

Earnings Trend: C2PU's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: C2PU's earnings growth over the past year (225.3%) exceeds its 5-year average (21.9% per year).

Earnings vs Industry: C2PU earnings growth over the past year (225.3%) exceeded the REITs industry 101.1%.

Return on Equity

High ROE: C2PU's Return on Equity (22.7%) is considered high.

Financial Health

How is Parkway Life Real Estate Investment Trust's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: C2PU's short term assets (SGD39.0M) do not cover its short term liabilities (SGD117.6M).

Long Term Liabilities: C2PU's short term assets (SGD39.0M) do not cover its long term liabilities (SGD792.8M).

Debt to Equity History and Analysis

Debt Level: C2PU's net debt to equity ratio (55.9%) is considered high.

Reducing Debt: C2PU's debt to equity ratio has reduced from 63.7% to 57.7% over the past 5 years.

Debt Coverage: C2PU's debt is not well covered by operating cash flow (10.9%).

Interest Coverage: C2PU's interest payments on its debt are well covered by EBIT (20.7x coverage).

Balance Sheet

Dividend

What is Parkway Life Real Estate Investment Trust current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.85%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: C2PU's dividend (2.85%) is higher than the bottom 25% of dividend payers in the SG market (2.22%).

High Dividend: C2PU's dividend (2.85%) is low compared to the top 25% of dividend payers in the SG market (5.95%).

Stability and Growth of Payments

Stable Dividend: C2PU's dividends per share have been stable in the past 10 years.

Growing Dividend: C2PU's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (94.8%), C2PU's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (94.8%), C2PU's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

11.3yrs

Average management tenure

CEO

Yean Chau Yong (55 yo)

13.42yrs

Tenure

Mr. Yean Chau Yong has been Chief Executive Officer at Parkway Trust Management Limited, the manager of Parkway Life REIT since December 2008. Mr. Yong has been Executive Director at Parkway Trust Managem...

Leadership Team

Experienced Management: C2PU's management team is seasoned and experienced (11.3 years average tenure).

Board Members

Experienced Board: C2PU's board of directors are considered experienced (5.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: C2PU insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31