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Parkway Life Reit posts 2.5% rise in Q2 DPU to 3.36 S cents

PARKWAY Life Real Estate Investment Trust's (Parkway Life Reit) distribution per unit (DPU) rose by 2.5 per cent to 3.36 Singapore cents for its second quarter ended June 30, from 3.27 cents a year ago.

Gross revenue was up 4.9 per cent to S$30.3 million for the quarter, from S$28.9 million a year ago.

This was due to contribution from three nursing rehabilitation facilities in Japan acquired on Dec 13, 2019, higher rent from its Singapore properties, and the appreciation of the yen, the healthcare real estate investment trust (Reit) said in a regulatory filing on Tuesday.

The Reit owns 53 properties in the Asia-Pacific region, including three hospitals in Singapore and 49 healthcare and healthcare-related assets in Japan.

Net property income (NPI) grew 5.3 per cent on the year to S$28.2 million for the quarter, from S$26.8 million.

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Distributable income rose 2.5 per cent year on year to S$20.3 million, from S$19.8 million.

The distribution will be paid out on Sept 2, after books closure on Aug 6.

Meanwhile, for the half year ended June 30, DPU was higher at 6.68 cents, versus 6.55 cents a year ago, and distributable income grew 1.9 per cent to S$40.4 million.

Gross revenue was 5.1 per cent higher at S$60.1 million, while NPI rose 4.9 per cent to S$56 million for the half year.

Chief executive of the Reit's manager, Yong Yean Chau, said the Reit's "resilient performance" was achieved through favourable rental lease structures, effective debt management, and prudent financial risk management.

"All our properties continue to be in operation even as the Covid-19 outbreak persisted during the quarter," he said. "With the gradual easing of restrictions in the countries where Parkway Life Reit is present, all (our) healthcare tenants have continued to enforce strict precautionary measures to ensure safety of their employees and patients/nursing care residents."

Mr Yong added that the Reit's manager will continue to monitor the Covid-19 situation closely and adapt its tenant-support measures accordingly.

Units of Parkway Life Reit closed at S$3.40 on Monday, down S$0.01 or 0.3 per cent.

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