Parkway Life Reit Q1 DPU up 2.5% to S$0.0365

PARKWAY Life Real Estate Investment Trust (Reit) : C2PU 0% posted a distribution per unit (DPU) of S$0.0365 for the first quarter of 2023, up 2.5 per cent from S$0.0356 last year.

The healthcare Reit pays out distributions on a semi-annual basis, and that forms a part of Parkway Life Reit’s distribution for the first half of this year, said its manager on Tuesday (Apr 25).

Gross revenue increased 21.7 per cent to SS37.3 million, up from S$30.7 million last year. 

Net property income (NPI) rose 23.5 per cent to S$35.3 million, from S$28.6 million the year before.

The increase in gross revenue and NPI were mainly due to contributions from the five nursing homes acquired in September 2022 and a higher rent from its Singapore properties under new master lease agreements which commenced in August last year. 

However, the higher rent was partially offset by the depreciation of the Japanese yen, the manager added. 

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

The Reit’s manager noted that its balance sheet and capital structure were strong, with no long-term debt refinancing needs until February 2024. 

As at Mar 31, 2023, all-in debt cost stood at 1.2 per cent while gearing was at 37.5 per cent. 

To mitigate income foreign exchange risks, the Reit has yen net income hedges in place until the first quarter of 2027, with about 78 per cent of interest rate exposure being hedged.

Based on Parkway Life Reit’s gross revenue as at Mar 31, 2023, Singapore contributed 61.4 per cent of gross revenue while Japan contributed 38.5 per cent. The Reit also has a weighted average lease to expiry by gross revenue of 16.8 years.

Units of Parkway Life Reit ended S$0.03 or up 0.8 per cent at S$3.96 on Monday.