Parkway Life Reit Q4 DPU up 6.7% to 3.57 Singapore cents

PARKWAY Life real estate investment trust (Parkway Life Reit) posted a distribution per unit (DPU) of 3.57 Singapore cents for the fourth fiscal quarter of the year ended December, up 6.7 per cent from 3.34 Singapore cents in the corresponding period last year.

This pushed the Reit's DPU for the FY 2020 to 13.79 Singapore cents, some 4.5 per cent higher than 13.19 Singapore cents in FY 2019.

Gross revenue for the quarter rose by 9 per cent to S$30.6 million from S$28.0 million in the corresponding period last year.

The group attributed this to a combination of revenue contributions from its property acquisitions in Japan in December 2019 and 2020, higher rent from Singapore properties, as well as the appreciation of the yen.

Property expenses for the quarter rose to S$2.1 million from S$0.7 million in the previous year, due to higher repair expenses incurred over the course of the year, as well as a general increase in property expenses in line with a larger portfolio.

The Reit added that property expenses for FY 2019 were "significantly lower" due to a one-off reclassification of insurance reimbursement received from gross revenue to property expenses to better reflect the performance of the underlying properties.

Notwithstanding the reclassification, the Reit said there was no impact to the net property income for the quarter, which grew 4.2 per cent to S$28.5 million from S$27.3 million.

Distributable income to unitholders for the quarter rose 6.7 per cent year on year to S$21.6 million from S$20.2 million. The distribution will be paid out on Feb 26, after the books are closed on Feb 2.

As at end-December last year, Parkway Life Reit had an enlarged portfolio of 54 healthcare and healthcare-related properties across Singapore, Japan and Malaysia, standing at some S$2.02 billion.

The Reit said an annual independent valuation performed for all its properties brought about a portfolio valuation gain of S$7.4 million, or an increase of 0.4 per cent in the total portfolio value.

Yong Yean Chau, chief executive of the manager, said the Reit's portfolio places it in a good position to benefit from the resilient growth of the healthcare industry in the Asia-Pacific region.

He said: "The healthcare industry continues to remain critically essential in a rapidly-ageing population and with greater demand for better-quality healthcare and global aged-care services.

"Against a backdrop of volatility in the macro economy and tepid performance in the financial markets, Parkway Life Reit will continue to focus on driving resilient returns backed by solid financial management."

Units in Parkway Life Reit closed at S$4.01 on Monday, down 0.5 per cent or S$0.02.