Parkway Life REIT posts flat 4Q21 net property income

Japanese 1,000 yen notesJapanese 1,000 yen notes

Parkway Life REIT reported Monday its fourth quarter net property income edged up 0.2 percent on-year to S$28.51 million on contributions from acquired nursing homes and on higher rent on Singapore properties. 

Higher rent was partly offset by the divestment of P-Life Matsudo in January 2021 and the depreciation of the Japanese yen, the REIT said. 

Gross revenue for the October-to-December period inched 0.1 percent higher on-year to S$30.61 million, the REIT said in a filing to SGX. 

The distribution per unit (DPU) came in at 3.57 Singapore cents, unchanged on-year, the filing said. 

In December 2021, the REIT acquired a nursing home in Japan for 3.2 billion yen, or around S$37.9 million, taking its portfolio to 56 healthcare and health-care related properties across Singapore, Japan and Malaysia. 

The REIT had also acquired a nursing home in December 2020 and two nursing home facilities in July 2021, the filing noted.

Full-year results

For the full year, Parkway Life REIT reported net property income slipped 1.1 percent on-year to S$111.23 million, on gross revenue of S$120.71 million, down 0.2 percent on-year, on the divestment of P-Life Matsudo in January 2021 and the depreciation of the Japanese yen.

The full-year DPU was 14.08 Singapore cents, up 2.1 percent on-year from 13.79 Singapore cents, the REIT said. 

Outlook

In its outlook, the REIT noted continued uncertainty due to the Covid-19 pandemic and rising inflation, which can endanger the economic recovery. 

“As uncertainties surrounding global economies continue to pose challenges for most businesses, Parkway Life REIT remains prudent as it proactively manages its portfolio and strategically navigates for growth opportunities,” the REIT said.

“Going forward, Parkway Life REIT will continue to focus on driving resilient returns backed by solid financial management. The healthcare industry will remain critically essential in a rapidly aging population with greater demand for better quality healthcare and aged care services. Parkway Life REIT’s assets place it in a good position to benefit from the resilient growth of the healthcare industry in the Asia Pacific region,” the REIT added.

Read more details about Parkway Life REIT’s results and portfolio.