PARKWAY Life Reit on Tuesday (Nov 1) posted a 0.1 per cent rise in net property income to S$82.8 million in its third quarter ended Sep 30, from S$82.7 million in the same period a year ago.
Gross revenue, meanwhile, was down 1.3 per cent to S$89 million, weighed by the depreciation of the Japanese yen and loss of income from the divestment of a non-core asset in 2021, according to a business update. In Q3 2021, gross revenue stood at S$90.1 million.
The drop in gross revenue was partially offset by contributions from three properties acquired in 2021 and five properties acquired in 2022, along with higher rent from Singapore hospitals.
As the real estate investment trust (Reit) hedged net income from Japan, the drop in revenue will be compensated by foreign exchange (FX) gains from the settlements of the forward contracts, the manager said.
Principal FX risk has been mitigated as its Japan acquisitions are fully funded by loans denominated in yen. Income FX risks, meanwhile, have been mitigated with yen net income hedges in place until Q1 2027. Around 73 per cent of interest rate exposure is hedged.
Parkway Life Reit's gearing stood at 34.7 per cent as at end-September. The manager added that there are no long-term debt refinancing needs until June 2023.
The counter closed 2.6 per cent or S$0.10 higher at S$4 on Monday.