Parkway Life Reit's DPU up 1.4% in Q1

PARKWAY Life Real Estate Investment Trust's (PLife Reit) distribution per unit rose 1.4 per cent to 3.32 Singapore cents for its first quarter ended March 31, from 3.28 cents a year ago.

The increase was mainly due to additional revenue contribution from three Japan nursing rehabilitation facilities acquired in December 2019, rental growth of existing properties and financing cost savings.

Partially offsetting the amount available for distribution was an S$850,000 sum retained during the quarter for Covid-19 related relief measures, the healthcare real estate investment trust's (Reit) manager said on Wednesday.

The S$850,000 is part of the S$1.7 million in total that the manager has set aside to provide targeted assistance and support measures for tenants affected by the novel coronavirus crisis. PLife Reit's portfolio comprises 49 healthcare properties in Japan.

Gross revenue grew 5.2 per cent to S$29.9 million for the first quarter, from S$28.4 million a year ago. This was largely attributable to the contribution from the three newly acquired Japan properties, a 1.6 per cent upward revision of minimum guaranteed rent for Singapore hospitals and the yen's appreciation.

Net property income rose 4.5 per cent on the year to S$27.7 million for the quarter, from S$26.5 million.

Amount available for distribution increased by 5.7 per cent year on year to S$21 million from S$19.8 million. This included the S$850,000 retained for Covid-19 related relief measures.

Distributable income to unitholders, which excludes the sum retained, stood at S$20.1 million, up 1.4 per cent from S$19.8 million a year ago.

The distribution will be paid out on May 29, after books closure on April 30.

PLife Reit remains in a "stable financial position" despite ongoing uncertainties in the economy and volatility in the financial markets, said Yong Yean Chau, chief executive officer of the Reit's manager.

PLife Reit units closed S$0.07 or 2.1 per cent lower at S$3.33 on Tuesday.