What Kind Of Shareholders Hold The Majority In Parkway Life Real Estate Investment Trust's (SGX:C2PU) Shares?

By
Simply Wall St
Published
September 14, 2020

If you want to know who really controls Parkway Life Real Estate Investment Trust (SGX:C2PU), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that used to be publicly owned tend to have lower insider ownership.

Parkway Life Real Estate Investment Trust has a market capitalization of S$2.4b, so we would expect some institutional investors to have noticed the stock. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Parkway Life Real Estate Investment Trust.

Check out our latest analysis for Parkway Life Real Estate Investment Trust

SGX:C2PU Ownership Breakdown September 15th 2020

What Does The Institutional Ownership Tell Us About Parkway Life Real Estate Investment Trust?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Parkway Life Real Estate Investment Trust. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Parkway Life Real Estate Investment Trust's earnings history below. Of course, the future is what really matters.

SGX:C2PU Earnings and Revenue Growth September 15th 2020

We note that hedge funds don't have a meaningful investment in Parkway Life Real Estate Investment Trust. Looking at our data, we can see that the largest shareholder is IHH Healthcare Berhad with 35% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.0% and 2.0% of the stock.

We did some more digging and found that 6 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Parkway Life Real Estate Investment Trust

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data suggests that insiders own under 1% of Parkway Life Real Estate Investment Trust in their own names. Keep in mind that it's a big company, and the insiders own S$6.0m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

With a 39% ownership, the general public have some degree of sway over Parkway Life Real Estate Investment Trust. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 35% of Parkway Life Real Estate Investment Trust. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 4 warning signs for Parkway Life Real Estate Investment Trust (2 can't be ignored) that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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