Parkway Life REIT reports 2Q19 net property income rose 2 percent

Singapore 50 dollar bill

Parkway Life REIT reported Wednesday its second quarter net property income rose 2.3 percent on-year to S$26.81 million on a Japan property acquisition, higher rent from Singapore properties and appreciation of the Japanese yen.

Gross revenue for the quarter ended 30 June rose 2.9 percent on-year to S$28.86 million, the REIT said in a filing to SGX.

The distribution per unit (DPU) for the quarter was 3.27 Singapore cents, up 2.6 percent from 3.19 Singapore cents in the year-ago quarter, the filing said.

“PLife REIT has continued to deliver stable results in the first half of 2019 and we are pleased with our resilient performance, which was achieved through favourable rental lease structures, effective debt management and prudent financial risk management,” Yong Yean Chau, CEO of the manager, said in the statement.

The Singapore hospitals have a rental revision formula of the consumer price index (CPI) plus one percentage point, with the minimum guaranteed rent set to increase by 1.61 percent for the 23 Autust 2019 to 22 August 2020 period, the filing said.

“We are well-positioned to benefit from the long-term outlook of the industry, which continues to be driven by ageing population and demand for better quality healthcare and aged care services,” Yong added.

For the first half, the REIT reported net property income rose 2.3 percent on-year to S$53.35 million on gross revenue of S$57.25 million, up 2.5 percent. DPU for the first half was 6.55 Singapore cents, up 3.0 percent from 6.36 Singapore cents in the year-ago period, the filing said.

Parkway Life REIT’s portfolio has 50 properties, across Singapore, Japan and Malaysia. In Japan, it has 46 properties, including 45 private nursing homes and one pharmaceutical product distribution and manufacturing facility.

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