PLife Reit's Q3 DPU rose 8.9% on higher rents, new assets, net income hedge

Published Thu, Oct 30, 2014 · 12:06 AM

RIDING on contributions from yield-accretive acquisitions, higher rent from existing properties and the positive effect of net income hedge, Parkway Life (PLife) Reit reported an 8.9 per cent rise in distribution per unit (DPU) to 2.9 Singapore cents for the third quarter ended Sept 30.

Its distributable income was S$17.6 million for the quarter, and its net property income put on 8.6 per cent to S$23.7 million.

Gross revenue gained 8.5 per cent from a year ago to S$25.3 million in the third quarter, due mainly to rental income contributions from the Japanese properties acquired in second half of 2013 and first quarter of 2014, as well as higher rent from existing properties.

The Reit registered a foreign-exchange gain of S$600,000 in the third quarter through income hedges against a potential depreciation of the yen.

Yong Yean Chau, the chief executive officer of the trust manager, said: "PLife Reit's robust fundamentals as a first-mover and enlarged portfolio of 47 high-quality assets mean that it is well-positioned to ride on the back of strong growth in the health-care sector. As part of our prudent financial risk management strategy, we have completed refinancing all debts due in FY 2015. This puts us in a good position as we seek new opportunities moving forward."

The Reit has successfully termed out all the debts due in fiscal year 2015. The weighted average debt term to maturity is extended from 2.88 years to 3.91 years due to the completion of a pre-emptive refinancing exercise, with current effective all-in cost of debt of 1.43 per cent.

Gearing remained at a healthy level of 34.6 per cent as at Sept 30, which provides ample headroom for growth, the Reit said.

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