CIMB Research downgraded Parkway Life Real Estate Investment
Trust, which owns healthcare assets, to 'neutral' from
'outperform', citing high valuations as it trades at a premium.
Units of Parkway Life were down 0.5 percent at S$1.925, and
have gained 8.2 percent so far this year.
"The market has rewarded the stock with a handsome defensive
premium. At 30 percent premium over book and yield compression
to 5 percent, we struggle to see significant upside," said CIMB.
However, CIMB raised its target price to S$2.11 from S$1.96,
taking into account a lower discount rate of 7 percent, and said
possible acquisitions in Malaysia and Australia could be a
In Japan, the plans of Parkway Life's management to upgrade
assets is a compelling strategy for long-term growth, said CIMB.
To read a statement, click
(Reporting by xx in Singapore;