Latest Earning Result – Three REITs That Have Outperformed Their Peers

The property industry in Singapore is currently facing headwinds due to a weaker economy.

As a result, most property-related investments, especially REITs, have shown signs of strain in their latest result.

Whether its a hospitality-related trust such as OUE Hospitality Trust (SGX: SK7) or an industrial-driven REIT such as Cambridge Industrial Trust (SGX: J91U), some REITs have posted weaker result, recently.

But some have bucked the market and performed strongly this quarter.

Parkway Life REIT (SGX: C2PU) is is one of the largest listed healthcare Real Estate Investment Trusts in Asia by asset size.

The REIT owns three private hospital properties locally and hold stakes in 44 healthcare-related assets in Japan. It also has strata-titled units/lots in Gleneagles Intan Medical Centre in Malaysia.

Yong Yean Chau, the CEO of Parkway Life REIT said: “This has been a tough year for the economy as investors are faced with uncertain market conditions and increased volatility. While we do expect some challenges in acquisition opportunities in the short to medium term, we continue to remain optimistic about PLife REIT’s prospects in the medium to longer term.”

Financially, gross revenue increased 8.2%, while net property income (NPI) improved 8% compared to the same quarter last year. The distribution per unit (DPU) came in higher by 2.5%, as compared to last year (excluding a one off gain a year ago).

For more information about the latest quarterly summary, please go here.

Keppel DC REIT (SGX: AJBU) is the first pure-play data centre REIT listed in Singapore. The real estate investment trust owns and manages 10 operational data centers in several countries (Singapore, Ireland, Malaysia, Australia, UK, and the Netherlands) with a portfolio value of S$1.14 billion.

It recently announced the acquisition of a data centre in Italy and has a data centre in Germany that’s under development.

In its latest earning release, the trust commented that it expects growth in the medium and long term through acquisition and proactive asset management strategy.

It said: “While the increase in data centre space in Singapore is expected to exert near-term pressure on rental rates, the Manager is confident of the data centre market’s long-term potential. The proposed acquisition of Keppel DC Singapore 3 under the right of first refusal granted by the Sponsor, Keppel Telecommunications & Transportation Ltd, will serve to strengthen the REIT’s foothold in the high-potential market and provide greater income resilience with an expanded portfolio.”

Gross revenue declined 12% but net property income (NPI) improved 6.2%, compared to the same quarter last year.

Distributable income for the reporting quarter climbed 15.9% year on year, resulting in a 15.9% improvement in distribution per unit (DPU).

More information on the latest quarterly result can be found here.

SPH REIT (SGX: SK6U) is an owner of two retail real estate properties in Singapore, namely Paragon and Clementi Mall.

Its main sponsor and shareholder is Singapore Press Holdings Limited (SGX: T39).

The company said: “We are pleased that SPH REIT has delivered another year of consistent distribution growth to unit holders. The resilient performance amid a challenging retail environment is a testament to our management philosophy that treats the relationship with tenants as a partnership, focusing on sustainable returns for both tenants and landlord.

It added: “Barring any unforeseen circumstances, SPH REIT’s two high quality and well-positioned retail properties in prime locations are expected to remain resilient and turn in a steady performance.”

Gross revenue improved 2.7%, while net property income (NPI) rose 5.3% year-on-year. Distributions per unit (DPU) ticked up by 1.4% to 5.5 cents. Both Paragon and The Clementi Mall achieved full occupancy at the end of the quarter.

If you like what you've seen, you can get even more investing insights and analyses from The Motley Fool's weekly investing newsletter Take Stock Singapore. It's FREE, so do check it out here.

Also, like us on Facebook to follow our latest news and articles. The Motley Fool's purpose is to help the world invest, better.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.