Parkway Life Reit posts 1.9% rise in Q1 NPI to S$28.6m

HEALTHCARE real estate investment trust (Reit) Parkway Life Reit reported a 1.9 per cent increase in net property income (NPI) to S$28.6 million in its first quarter ended Mar 31, 2022, up from S$28.0 million a year ago.

Gross revenue for the quarter rose 2.3 per cent to S$30.7 million, from S$30.0 million the year before.

As part of its first-quarter business update released on Friday (Apr 22), the Reit’s manager noted that its balance sheet and capital structure remained strong, with no long-term debt refinancing needs until June 2023. As at Mar 31, 2022, all-in debt cost of the Reit stood at 0.56 per cent, while its gearing stood at 34.5 per cent.

The Reit’s manager also said that a total of 7.71 billion yen (S$86.0 million) in short-term loans were drawn down to fund the Reit’s Japan acquisitions in the second half of 2021.

To increase its hedging of interest rate exposure, the Reit’s manager said that it executed new Japanese yen interest rate hedges in March 2022, resulting in 81 per cent of its interest rate exposure being hedged.

Based on gross revenue of the Reit as at Mar 31, its properties in Singapore, Japan and Malaysia contribute 60.5 per cent, 39.3 per cent and 0.2 per cent of overall gross revenue, respectively. The Reit also has a weighted average lease to expiry by gross revenue of 17.2 years.

Units of Parkway Life Reit closed down 1.6 per cent or S$0.08 at S$4.85 on Friday, before the update was released.