Parkway Life REIT reports 3Q19 net property income rose 4 percent

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Healthcare focused Parkway Life REIT reported Thursday its third quarter net property income rose 3.9 percent on-year to S$27.55 million, mainly on higher rent from the Singapore properties.

The appreciation of the Japanese yen and a one-off receipt of insurance proceeds from some Japanese assets also boosted the results, the filing said.

Gross revenue for the quarter ended 30 September increased 5.4 percent on-year to S$29.93 million, the REIT said in a filing to SGX.

The distribution per unit (DPU) was 3.30 Singapore cents, up 1.9 percent from 3.23 Singapore cents in the year-ago period, the filing said.

“We are pleased to report stable results in the third quarter of 2019 even as the global economic slowdown has continued to weigh on markets and investor sentiment. While the long-term outlook of the industry continues to be driven by solid fundamentals, we remain
cautious and vigilant in our approach,” Yong Yean Chau, CEO of the REIT’s manager, said in the statement.

“We have enjoyed uninterrupted recurring DPU growth since listing and remain on track to deliver another year of growth,” Yong added.

For the nine-month period, Parkway Life REIT reported net property income S$80.90 million, up 2.8 percent on-year on gross revenue of S$87.18 million, up 3.5 percent on-year, supported by the Japan property acquisition in February 2018. The nine-month DPU was 9.85 Singapore cents, up 2.6 percent from 9.59 Singapore cents in the year-ago period, the filing said.

Parkway Life REIT’s portfolio has 50 properties, including Singapore-based private hospitals Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital, as well as 46 assets in Japan, 45 of which are nursing home and care facilities. The REIT also owns strata-titled units in MOB Specialists Clinics in Kuala Lumpur, Malaysia.

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