Parkway Life Reit H1 DPU rises 14.6% to S$0.0877

[SINGAPORE] Parkway Life Real Estate Investment Trust’s (Reit) distribution per unit (DPU) rose 14.6 per cent to S$0.0877 for its first half ended Jun 30, from S$0.0765 a year earlier.

Revenue was down 1.6 per cent at S$77.1 million, from S$78.3 million in the previous corresponding period.

This was mainly due to foreign-exchange headwinds from the depreciation of the yen and lower rental income arising from tenant exits affecting five Japan nursing home properties, the Reit’s manager said on Tuesday (Aug 4).

Net property income fell 2 per cent year on year to S$72.4 million, from S$73.8 million previously.

Distributable income rose 14.6 per cent to S$57.2 million, from S$49.9 million. This was underpinned by the Reit’s Singapore and France portfolios, the manager said.

“The growth was primarily driven by the higher rental contributions from the Singapore hospitals’ Annual Rent Review formula and step-up lease arrangement from the France portfolio, as well as the absence of the France tax provision recognised in the corresponding period last year,” it added.

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The distribution will be paid out on Sep 8.

Units of Parkway Life Reit rose 0.2 per cent or S$0.01 to close at S$4.23 on Tuesday, after the news.