Revival of foreign patients to uplift Parkway REIT’s hospitals: analyst

Foreign patients accounted for 25% of hospitals’ revenue.

As medical tourism recovers, Parkway REIT’s Singapore hospitals will be seeing recovery as 25% of their revenue relies on foreign patients during the 2019 period.

In UOBKayHian's brokerage report, Parkway REIT’s hospitals in the Lion City have been uplifted by reopening of borders in April 2022.

In fact, the REIT’s revenue intensity went up 23% in the first half of 2022.

“Foreign patients have returned in significant numbers after Singapore reopened its international borders in April 2022. This was offset by a significant tapering of COVID-19 related services,” said UOBKayHian.

It also noted the REIT' further expansion in Japan, which includes the acquisition of two nursing homes.

“PREIT trades at a premium due to its resiliency and the scarcity of its healthcare properties,” said UOBKayHian.