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PARKWAY Life Real Estate Investment Trust (PLife Reit) marked a 8.8 per cent drop in distribution per unit (DPU) for the third quarter ended Sept 30 to 3.06 Singapore cents due to an absence of one-off distribution of divestment gain.
There was, however, improvement in underlying earnings. Gross revenue for the period rose 8.2 per cent to S$28.1 million driven by contribution from one nursing home acquired on March 31, higher rent from the properties in Singapore and the appreciation of the yen.
As a result, net property income grew 8 per cent to S$26.2 million.
"We are committed to improving the performance of the group through a robust asset enhancement strategy," said Yong Yean Chau, CEO of the Reit manager.
"Since listing, we have devoted substantial effort to implementing asset enhancement initiatives (AEI) with the aim of unlocking the value of our properties and developing them to their full potential."
Following the completion of the AEI at Sawayaka Kiyotakan in Japan, rent is expected to increase by 4.7 per cent for the remaining lease term of 17 years from July 26. This is the ninth AEI for the group's Japan portfolio and fourth AEI with PLife Reit's largest nursing home operator KK Sawayaka Club.