PLife DPU falls 10.2% in Q2 in absence of distribution gains

PARKWAY Life Real Estate Investment Trust (PLife Reit) on Tuesday posted a 10.2 per cent fall in distribution per unit (DPU) for the second quarter, due to the absence of a one-off distribution of divestment gain, it said.

DPU for the three months ended June 30, 2016, stood at 3.01 Singapore cents, down from 3.35 Singapore cents in Q2 2015.

A year ago, PLife Reit had made a distribution of divestment gains of S$2.28 million, relating to the sale of seven Japan properties in December 2014. The gain was fully distributed to unitholders over four quarters in 2015.

Excluding the one-off gain, DPU from recurring operations for the quarter rose 1.2 per cent from a year ago.

"The long-term prospects of the regional healthcare industry continue to be driven by rising demand for better quality private healthcare services given the fast-ageing populations," said the Reit manager in its financial statement. "However, in the short to medium term, Parkway Life Reit expects challenges in acquisition opportunities given the market volatility."

PLife Reit owns the largest portfolio of private hospitals in Singapore comprising Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital. It also owns 44 healthcare and healthcare-related assets in Japan and the strata-titled units in Gleneagles Intan Medical Centre, Kuala Lumpur.