Parkway Life Reit Q3 DPU up 0.8% to S$0.0356

PARKWAY Life Reit's C2PU distribution per unit (DPU) rose 0.8 per cent to 3.56 Singapore cents for the third quarter ended Sep 30, the manager of the real estate investment trust (Reit) said in a results release on Wednesday (Nov 3) night.

Distributable income rose 0.8 per cent to S$21.6 million, compared to S$21.4 million in the year-ago quarter.

This was despite net property income falling 2.9 per cent to S$27.3 million, from S$28.1 million before. The Reit said the fall was due to the provision of a one-off allowance for doubtful debts.

Gross revenue rose 1.2 per cent to S$30.5 million, from S$30.2 million before, due mainly to higher rent from Singapore properties and revenue contribution from Japan acquisitions completed in December 2020 and July 2021.

This was partly offset by the lost of income from the divestment of a non-core property in Japan, and the depreciation of the yen.

The latest results take the year-to-date DPU to S$0.1051, up 2.9 per cent from the year-ago period.

But year-to-date gross revenue is still down 0.3 per cent at S$90.1 million, compared to S$90.3 million before.

Parkway Life Reit highlighted that it has renewed the master leases for its Singapore hospitals, after unitholders gave their approval at an extraordinary general meeting in September,and the agreements were executed on Oct 13.

"Secured with clear rent structure, the Singapore hospitals will continue to deliver a steady stream of quality rental income over a long lease term till December 2042," said the Reit.

The group's overall portfolio weighted average lease to expiry, by gross rent, has been extended to 17.42 years, from 5.36 years before.

In October, the group also executed a 3-year committed loan facility to term out a remaining Singapore-dollar loan due in 2022. With this, and a Japanese yen loan due in 2022 that will be termed out in Q4 2021, the Reit will have no long-term debt refinancing needs till June 2023.

Units in the Reit closed up S$0.02 or 0.43 per cent at S$4.65 on Wednesday before the results.