Parkway Life Reit raises Q3 DPU by 7.4% to 3.54 S cents

PARKWAY Life Real Estate Investment Trust's (Parkway Life Reit) distribution per unit (DPU) rose 7.4 per cent to 3.54 Singapore cents for its third quarter ended Sept 30, 2020, from 3.3 cents a year ago.

Gross revenue was up 0.8 per cent to S$30.2 million for the quarter, from S$29.9 million the year before.

This was largely due to contributions from three Japan nursing rehabilitation facilities acquired in Q4 2019, higher rent from Singapore properties as well as the appreciation of yen, the Reit manager said on Wednesday.

The higher rent was partially offset by a one-off receipt of insurance proceeds for the reimbursement of property repair expenses incurred by certain Japanese assets in 2019, the manager added.

Meanwhile, net property income grew 2 per cent on the year to S$28.1 million for the quarter, from S$27.6 million.

Distributable income to unitholders rose 7.4 per cent year on year to S$21.4 million, from S$19.9 million. The distribution will be paid out on Dec 8, after books closure on Nov 12.

Yong Yean Chau, chief executive of the manager, said with a strong portfolio of quality assets combined with active capital management strategies, the Reit can continue to deliver improved returns to unitholders.

Units of Parkway Life Reit closed at S$4.10 on Tuesday, up S$0.07 or 1.7 per cent.