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PLife REIT's Q1 DPU slips on absence of one-off divestment gain

PARKWAY Life Real Estate Investment Trust's (PLife REIT) first-quarter distribution per unit (DPU) fell to 3.17 Singapore cents from 3.28 cents a year ago due to the absence of a one-off distribution of divestment gain that was recorded in 1Q 2017.

However, DPU from the group's recurring operations rose 3.6 per cent from 3.06 cents to 3.17 cents, PLife REIT highlighted.

Gross revenue for 1Q 2018 increased 3.2 per cent to some S$27.82 million on the back of contributions from a nursing rehabilitation facility acquired in February this year, higher-yielding properties acquired from the asset recycling initiative completed in February last year, as well as higher rent from the Singapore properties.

As such, net property income was up 3.3 per cent at S$25.96 million, while total distributable income to unitholders (from recurring operations) clocked S$19.17 million or 3.6 per cent higher.

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Yong Yean Chau, chief executive of the manager, said: "This has been a positive start for the year for PLife REIT. Recurrent DPU has continued to grow on the back of favourable rental lease structures, which ensure steady rental growth while protecting revenue downside, amid uncertain market conditions. On the risk management front, we have adopted prudent financial risk management strategies to manage the exposure to interest rate risk and foreign currency risk. This further strengthens the stability of the REIT's net asset value and cash flows."

The DPU will be paid on June 1.