Parkway Life REIT

1. Economic and Market Risks: As Parkway Life REIT primarily invests in healthcare properties, its performance and returns are tied to the overall economic conditions and real estate market. Any downturn or recession may have a negative impact on the demand for healthcare services and could result in lower occupancy rates and rental income for the REIT.

2. Interest Rate Risk: Parkway Life REIT has significant borrowings to finance its acquisitions and operations. Any increase in interest rates could increase its borrowing costs and negatively impact its financial performance.

3. Tenant Concentration Risk: The REIT’s portfolio is highly dependent on a few key tenants, primarily Parkway Hospitals Singapore, which accounts for a significant portion of its rental income. Any financial distress or termination of these tenants could have a significant impact on the REIT’s cash flow and earnings.

4. Regulatory Risks: As a healthcare REIT, Parkway Life REIT is subject to various government regulations and policies, including changes in healthcare policies, licensing requirements, and reimbursement rates. Any adverse changes in these regulations could affect the REIT’s operations and financial performance.

5. Foreign Exchange Risk: Parkway Life REIT has investments in multiple countries, which exposes it to foreign exchange fluctuations. Any adverse movement in exchange rates could impact the REIT’s earnings and distributions to unitholders.

6. Property and Asset Valuation Risks: The value of the REIT’s properties is subject to changes in market conditions, supply and demand dynamics, and changes in rental income. Any decrease in property values can impact the REIT’s financial performance and distribution to unitholders.

7. Concentration in One Asset Class: As Parkway Life REIT primarily invests in healthcare properties, it is exposed to risks related to this asset class, such as regulatory changes, healthcare market dynamics, and competition.

8. Leverage Risk: The REIT’s leverage strategy could expose it to risks related to high debt levels, such as the inability to service its debt, refinancing risk, and increased vulnerability to interest rate movements.

9. Liquidity Risk: Parkway Life REIT is a closed-end fund, which means its units are not freely tradable on a stock exchange, and investors may not be able to sell their units when desired. This lack of liquidity could result in significant price volatility and may affect the REIT’s ability to raise funds for growth or meet its financial obligations.

10. Currency Risk: As the REIT holds assets in multiple currencies, changes in currency exchange rates could impact its earnings, distribution, and net asset value.