Parkway Life Reit DPU up 9.6% in Q1 2017

PARKWAY Life Real Estate Investment Trust (Reit) reported a distribution per unit (DPU) of 3.28 Singapore cents, up 9.6 per cent from a year ago, Parkway Trust Management Limited said in a Singapore Exchange filing on Tuesday.

For the three months ended March 31, 2017, the DPU from its recurring operations continued to grow by 2.2 per cent to 3.06 Singapore cents, despite the divestment of four Japan nursing homes in December 2016, it said.

The gain from the divestment will be equally distributed over the four quarters of the financial year ending December 31, 2017, with a payout of 0.22 Singapore cents for Q1 2017.

Gross revenue crept up 0.2 per cent to S$26.9 million year-on-year despite the divestment. It was supported by contribution from a nursing home acquisition in March 2016, higher rent from Singapore properties and the appreciation of the Japanese yen.

Five Japan properties, whose acquisitions were completed on Feb 24, 2017, have started contributing to the group's revenue in Q1 2017.

Net asset value per unit of the group remained the same as the previous quarter at S$1.72.