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ParkwayLife REIT ups its DPU

parkwaylife reit logo ParkwayLife REIT (SGX: C2PU) (PLife REIT), one of the largest listed healthcare REITs in Asia by asset size, released its results for the second quarter ended 30 June 2013 (2Q 2013) yesterday.

PLife REIT recorded a gross revenue of $22.6 million for 2Q 2013, $0.8 million lower than that in 2Q 2012. This was mainly due the depreciation of the Japanese Yen which was partially offset by the full quarter’s revenue contribution from the Malaysia properties acquired in August 2012 and higher rent from the Singapore properties.

Consequently, the net property income was $21.1 million for 2Q 2013, representing year-on-year decline of 2.9%.

Overall, due to increase in yields from Japan and Malaysian acquisitions, higher rent from existing properties, savings from lower financing costs, and resulting net income hedge, distributable income for 2Q 2013 increased 6.1% to $15.9 million.

The distributable income per unit came up to 2.63 cents for 2Q 2013, an increase of 6.1% over 2Q 2012. As at 30 June 2013, PLife REIT’s effective all-in cost of debt was 1.52% and the gearing is at 31.2%.

The Singapore properties are set to register a 4.44% increase in minimum guaranteed rent above the total rent payable for the previous year due to a rental revision formula.

Mr Yong Yean Chau, Chief Executive Officer of Parkway Trust Management Limited, said, “We are pleased to report a fruitful first half of 2013 as we continued delivering growing returns to Unitholders. Our natural hedging strategy for income and borrowings enabled us to mitigate the impact from the recent volatility in the Japanese Yen, thereby enhancing the stability of net asset value and distributions. With the majority of our portfolio having downside revenue protection, and built-in rental escalation for our Singapore properties boosting revenue, PLife REIT remains in a strong position to capture the opportunities offered by Asia Pacific’s burgeoning healthcare industry for continued growth.”

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