"The best time to plant a tree was 20 years ago. The second best time is now."
Parkway Life Reit has been on my radar for a very long time since I missed its IPO in 2007.
I had always missed the opportunity to own it as my orders were either not filled or its share price keeps rocketing northward for the past decade and I was unwilling to pay the premium to own it.
The time has finally arrived as its share price corrected from the highs of $5.10s in end 2021 to $3.60 today.
My humble order using idle SRS funds was filled today.
This gives me the chance to initiate a position in a defensive healthcare REIT with a yield of around 4% p.a. for the long term.
Parkway Life Reit owns a unique class of resilient healthcare properties - 57 freehold nursing homes in Japan, specialist clinics in Malaysia and 3 hospitals in Singapore including the likes of Mount Elizabeth and Gleaneagles.
This Reit has never performed any equity fund raising for acquisitions but rely on internal funding and bank loans to expand its assets since IPO to achieve its ever growing dividends.
It is very defensive because of its long-term leases with the hospitals and nursing homes, with stable income supported by positive annual escalation. The properties are located predominantly in Japan and Singapore with ageing population demanding ever-increasing healthcare services.
Furthermore, it is prudent in managing foreign income from Japanese Yen by putting in place Japanese Yen foreign exchange contracts till 1Q 2027 and hedging 77% of interest rate exposure.
I like this Reit and am happy to initiate a small position in my ultra long-term SRS portfolio.
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