Q&ACategory: Dividend StocksParkway Life Reit
Candy Lee asked 3 months ago
Hi Rusmin I don't understand why Parkway Life Reit's share price is so depressed, when it has seemingly good fundamentals and business model.  Can you enlighten?  I have bought previously at highs of $4.20 and am wondering if I should average down and buy more at current price, but their dividend yield is lower than the other REITs with good sponsors.  
1 Answers
Rusmin Ang Staff answered 3 months ago

Hi Candy,

I am sorry to say this but PLife REIT was overvalued when you bought it. As interest rate gone up a lot since 2022, the REIT prices have come down because yield across the board has to go up. PLife also carries nursing assets in Japan (1/3) which is under stress because of weakening of Yen against SGD.

At current price of $3.42, the price is still slightly above the valuation. At $3.20, it will be fairly value. I think good price for entry will be when PLife is at its fair value. Best would be when price starts to hit yield above 5%.