Parkway Life REIT posts 2Q21 net property income slipped

Singapore 50 dollar bill

Parkway Life REIT reported its second quarter net property income slipped 2.8 percent on-year to S$27.42 million on the divestment of a non-core property in Japan and the depreciation of the Japanese yen.

The decline was offset by contributions from a Japan nursing home acquired in December and higher rent from Singapore properties, the REIT said.

Gross revenue for the quarter ended 30 June declined 2.3 percent on-year to S$29.57 million, the Asia-based healthcare REIT said in a filing to SGX Tuesday.

The distribution per unit (DPU) for the quarter came in at 3.38 Singapore cents, up 0.7 percent on-year, for an annualised distribution yield of 2.95 percent based on the 30 June closing unit price. The absence of year-earlier Covid-19 relief measures helped boost DPU, the REIT said.

“We are pleased that amidst continued disruptions worldwide given renewed Covid-19 waves and the emergence of new variants, PLife REIT has delivered another quarter of recurring DPU growth for our unitholders,” Yong Yean Chau, CEO of the REIT’s manager, said in the statement.

“During such times of uncertainties, priorities remain in fortifying the growth potential and income sustainability of PLife REIT’s existing core
markets and prudent financial and risk management. To further pivot PLife REIT’s growth, we will also selectively seeking out strategic acquisitions and foster stronger partnerships for collaborative growth,” Yong added.

Parkway Life REIT’s portfolio holds 55 properties in the Asia-Pacific region, with a valuation of around S$2 billion; its properties include private hospitals in Singapore and 51 nursing home and care facility properties in Japan as well as strata-titled units/lots in MOB Specialilst Clinics Kuala Lumpur in Malaysia.