by winston » Fri Oct 01, 2010 6:31 pm
Not vested. From CIMB:-
Parkway Life REIT - Japanese nursing homes upclose
Maintain Outperform with unchanged target price of S$1.91. We went with PLife’s
management on a tour to four of their nursing homes assets in Japan. This includes
three in Fukuoka (Sawayaka Obatake Ichibankan, Sawayaka Obatake Nibankan and
Sawayaka Shinmojikan) managed by Uchiyama Group and one in Yokohama (Bon
Sejour Shin-Yamashita) managed by Benesse.
We were impressed by the quality of both hardware and software aspects of the assets, are convinced that the positive outlook of the Japanese nursing care industry would ensure stable cashflows to Plife REIT.
We make no changes to our estimates, and DDM target price of S$1.91 (discount 7.2%). We continue to like management’s pro-activeness in seeking third-party acquisitions and prudent capital management. Our DPU forecast of 8.3cts for FY10 represents a 5.2% yield.
Demand for nursing homes to grow with severe rate of population aging. Japan’s
population has been aging at an alarming rate, vis-a-vis other developed nations. By
2055, persons aged 65 and above are expected to form 40.5% of the total population
from the current 29%.
Long-term care insurance (LTCI) fuels growth of nursing homes industry. The
implementation of the LTCI in 2000 offers LTCI payouts to certified persons requiring
nursing care. This sprouted the growth of nursing care sector which is dominated by the
private sector.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"