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Parkway Life Reit Q3 DPU rises 1.9% to 3.3 S cents

PARKWAY Life Real Estate Investment Trust (Reit) on Thursday posted a 1.9 per cent rise in distribution per unit (DPU) to 3.30 Singapore cents for the third quarter ended Sept 30, from 3.23 Singapore cents a year ago. 

Gross revenue rose 5.4 per cent to S$29.9 million, from S$28.4 million last year on the back of higher rent from its Singapore properties, and appreciation of the Japanese yen. 

Also included in the revenue for this quarter was an one-off insurance proceeds for the reimbursement of property repair expenses incurred by certain Japanese properties, which accounted for higher property expenses in Q3 2019. In addition, Parkway East Hospital's adjusted hospital revenue for the 12th year lease has outperformed its minimum guaranteed rent, contributing to the increase in revenue, the Reit manager said. 

Net property income was up by 3.9 per cent to S$27.6 million, from S$26.5 million last year. This increase was mainly attributable to rent contribution from the Reit's property acquisition in the first quarter last year, and an upward minimum guarantee rent revision of Singapore hospitals by 1.61 per cent, the manager said. 

Distributable income rose 1.9 per cent to S$19.9 million for the quarter. The distribution will be paid out on Dec 4, after books closure at 5pm on Nov 8. 

Yong Yean Chau, CEO of the manager, said: "We are pleased to report stable results in the third quarter of 2019, even as the global economic slowdown has continued to weigh on markets and investor sentiment.

"While the long-term outlook of the industry continues to be driven by solid fundamentals, we remain cautious and vigilant in our approach and are committed to safeguarding the stability of distribution to unitholders. We have enjoyed uninterrupted recurring DPU growth since listing, and remain on track to deliver another year of growth."

Parkway Life Reit units closed at S$3.24 on Wednesday, down 0.9 per cent, or three Singapore cents. 

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