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Parkway Life Reit DPU down 2.9% to 3.28 S cents for Q4
PARKWAY Life Real Estate Investment Trust (Reit) saw distribution per unit (DPU) fall 2.9 per cent to 3.28 Singapore cents for the three months ended Dec 31, mainly due to the absence of a one-off divestment gain in the year-ago period.
The gain was attributable to the divestment of four Japan properties in December 2016, which was fully distributed to unitholders over four quarters in fiscal year 2017, the Reit manager said.
The Reit's distributable income for the fourth quarter, entirely from recurring operations, came in at S$19.8 million, down from total distributable income of S$20.5 million a year earlier.
Nonetheless, excluding the one-off gain, distributable income from recurring operations grew 3.9 per cent from S$19.1 million in the preceding year.
For Q4 2018, net property income rose 3.8 per cent to S$26.7 million, on the back of a 3.7 per cent rise in gross revenue to S$28.6 million. This was mainly due to higher rent from its Singapore properties, contribution from a nursing rehabilitation facility acquired in February last year, and appreciation of the Japanese yen from a year ago.
For the full-year ended Dec 31, DPU fell 3.5 per cent to S$77.8 million, while net property income edged up 2.7 per cent to S$105.4 million.
Looking ahead, the Reit manager noted that the long-term outlook of the industry continues to be driven by an ageing population and the demand for better quality healthcare and aged care services. Notwithstanding this, the Reit remains "cautious and vigilant", given uncertainties in the macroeconomy and volatility in the financial markets.
CEO of the Reit manager, Yong Yean Chau, added that the Reit will continue to adopt prudent financial risk management to manage its exposure to interest rate and foreign currency risks, in a bid to enhance the defensiveness of its portfolio.
As at Dec 31, the group owns 50 healthcare and healthcare-related properties in Singapore, Japan and Malaysia, with a total portfolio size of about S$1.86 billion. This includes private hospitals in Singapore such as Mount Elizabeth Hospital and Gleneagles Hospital.
Units in Parkway Life Reit closed at S$2.79 each on Monday, up 1.8 per cent, or five Singapore cents.