Dividend investors in Singapore are always on the lookout for stability and resilience in their portfolios.
Real estate investment trusts (REITs) are a popular choice for their reliable payouts but not every REIT is made equal.
Parkway Life REIT (SGX: C2PU), is a healthcare-focused REIT, often regarded as a highly defensive sector.
The Healthcare industry is considered as stable and defensive, and not as dependent on the macroeconomic environment.
But is Parkway Life REIT truly the safest dividend play in Singapore?
Established in 2007, Parkway Life REIT owns a portfolio of hospitals in Singapore, as well as nursing homes and healthcare facilities in Japan, France, and Malaysia.
As of 30 June 2025, its AUM was S$2.46 billion.
Parkway Life also has one of the longest master lease structures in Singapore REITs, with strong anchor tenants from the healthcare sector.
As of 24 October 2025, Parkway Life REIT is trading at S$4.18 per unit, remaining fairly stable since 2021.
In terms of revenue, there has been strong growth with a 7.6% CAGR over the last three years and 5.1% over the last five years.
With a gearing ratio of 35.4% as of 1H2025, it has a healthy level of debt, below the 50% regulatory limit set by the government.
One of the key indicators that we look at for REITs is the dividend per unit (DPU) that the REIT pays out to shareholders.
Since its IPO in 2007, Parkway Life REIT has grown its DPU from S$0.0632 in 2007 to S$0.1477 in 2024.
Today, its yield is 3.6%.
While ParkwayLife REIT’s yield is lower than most REITs that have yields of around 5% to 8%, the stability and predictability of the healthcare industry makes up for that.
After analysing the REIT, let’s summarise its driving factors: The healthcare industry is highly defensive and reliable, which is supported by the fact that Parkway Life has long master leases with clients (up to 2042).
By expanding into other geographies such as Japan and France, it diversifies some risk, while creating new avenues for market expansion in the future.
Despite these strengths, there are some considerations while looking at Parkway Life REIT.
Operating in a defensive sector also comes with lower dividend yields at 3% to 4% as compared to commercial or retail REITs, which have higher payouts.
Parkway Life is also heavily reliant on Singapore’s healthcare system, which is a fairly reliable bet due to the country’s ageing population.
Their expansion into France and Japan also exposes them to some currency risks, especially as the Japanese Yen has been volatile in the past few years.
Given the nature of the healthcare industry, acquisitions are often harder to find and there is a risk of the portfolio stagnating.
To mesh these pros and cons together, Parkway Life REIT is one of the most defensive and predictable dividend plays in Singapore.
The lower yields are a tradeoff for the stability and safety that the healthcare industry provides to investors.
If you are a more conservative investor looking for steady and predictable growth, rather than winning big, this REIT might just be for you.
Get Smart: Parkway Life REIT – A safe pair of hands for those looking to invest in REITs
Parkway Life REITs healthcare focus, long leases, and inflation-linked rents makes it unique amongst Singapore REITs
What the REIT sacrifices in distribution yields, it makes up for with peace of mind and dependable income.
For investors who prioritise safety over high yields, Parkway Life REIT deserves a spot on the watchlist or even in your retirement portfolio.
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Disclosure: Raghav does not own any holdings in Parkway Life REIT.
