Parkway Life REIT 4Q18 net property income up nearly 4 percent on Japan facility acquisition

Singapore 50 dollar bill

Parkway Life REIT reported on Monday that its net property income for the fourth quarter rose 3.8 percent on-year to S$26.72 million on the revenue contribution from a Japan nursing rehabilitation facility acquired in February 2018.

It also received higher rent from its Singapore properties and benefited from the appreciation of the Japanese yen on-year, the REIT said.

Gross revenue for the quarter ended 31 December increased 3.7 percent on-year to S$28.57 million, it said in a filing to SGX after the market close on Monday.

The distribution per unit (DPU) for the quarter was 3.28 Singapore cents, down 2.9 percent on-year from 3.38 Singapore cents in the year-ago quarter, due to the absence of a year-earlier one-off divestment gain, the filing said.

For the full year, the REIT reported net property income rose 2.7 percent on-year to S$105.40 million on gross revenue of S$112.84 million, up 2.7 percent on-year. DPU for the full year was 12.87 Singapore cents, down 3.5 percent on-year from 13.35 Singapore cents in the previous financial year, it said.

That missed a forecast from DBS, which had estimated full-year net property income of S$107 million on gross revenue of S$116 million, with a DPU of 12.8 Singapore cents.

The portfolio’s committed occupancy was at 99.97 percent, it said.

Including the Japan nursing facility acquisition, Parkway Life REIT has a portfolio of 50 healthcare and healthcare-related properties across Singapore, Japan and Malaysia, the filing said.

In the outlook, Yong Yean Chau, CEO of Parkway Trust Management, the REIT manager, said the trust expected to continue to deliver stable distributions, and that it would look to make selective acquisitions and asset enhancements.

“With healthy fundamentals in place, underpinned by supportive demographic trends and the higher demand for better quality healthcare and aged care services, the long-term outlook of the healthcare industry in Asia remains strong,” Yong said in the statement. “Nonetheless, we remain cautious and vigilant given the current uncertainties in the macro economy and volatility in the financial markets.”


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