3 Slides To Give Investors A Quick Overview Of Parkway Life REIT’s Latest Results

Parkway Life REIT (SGX: C2PU) is one of the largest listed healthcare real estate investment trusts (REITs) in Asia by asset size.

The REIT owns three private hospital properties locally and has stakes in 45 healthcare-related assets in Japan. It also has strata-titled units/lots in Gleneagles Intan Medical Centre in Malaysia.

The REIT has recently reported its fourth quarter earnings for the financial year ended 31 December 2017 (4Q 2017). In this article, let’s look at three particular useful pieces of information from the presentation.

A quick overview of the financial metrics

Source: Parkway Life REIT 4Q 2017 Presentation

The above is a quick overview of Parkway Life REIT’s 4Q 2017 results. The marginally weaker gross revenue was due to the depreciation of Japaneses Yen. On the other hand, the growth in net property income (NPI) was due to absence of one-off marketing commission paid to the REIT’s manager.

A breakdown of gross revenue

Source: Parkway Life REIT 4Q 2017 Presentation

The above is a quick breakdown of Parkway Life’s gross revenue for 4Q 2017.

What we can see is that Singapore and Japan accounted for about 61% and 39% of the gross revenue in 4Q 2017 respectively. The former saw higher revenue due to upward rent reversion of 1.27% while the latter’s revenue fell mainly due to the weaker Japanese Yen, partially offset by new acquisition.

A quick overview of the gearing level

Source: Parkway Life REIT 4Q 2017 Presentation

The above is a slide showing the gearing level for Parkway Life REIT as at 31 December 2017.

The existing gearing level of 36.4% is at a safe distance from the regulatory ceiling of 45%. As such, the REIT still can borrow up to S$278.5 million for future acquisitions before there is a need to raise new equity capital.

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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.