Parkway Life REIT gains a bull in Maybank on its strong uninterrupted recurring dividend growth and a visible and growing distribution profile from lease renewals.
Maybank forecasts the REIT's distribution per unit of S$0.147, S$0.151 and S$0.182 for FY24 to FY26, respectively, representing a CAGR of 7.2%, analyst Krishna Guha writes in a report.
Management has also highlighted the possibility of accretive acquisitions as well as deepening its footprint in Europe, Guha notes.
Maybank initiates coverage of the REIT with a buy rating and a target price of S$4.10.
Units are 0.8% higher at S$3.79.