Parkway Life Reit fourth quarter distribution per unit up 16.1 per cent

SINGAPORE - Contribution from higher yielding properties from an earlier asset recycling initiative and higher rent from Singapore properties boosted fourth quarter earnings at Parkway Life Reit.

The Reit posted a 16.1 per cent rise in distributable income to S$20.35 million for the three months to Dec 31.

Distribution per unit rose 16.1 per cent to 3.37 cents for the period.

For the year to Dec 31, distributable income rose 15.3 per cent to S$80.39 million while distribution per unit rose 15.3 per cent to 13.29 cents.

Based on the closing market price of S$2.33 on Dec 31, this translated into a distribution yield of 5.7 per cent, up from 4.94 per cent previously.

In the fourth quarter, net property income rose 4.8 per cent to S$24.6 million on the back of a 4.8 per cent rise in gross revenue to S$26.3 million.

Mr Yong Yean Chau, chief executive officer of the trust's manager, said that while investors are becoming more conservative about the global economic environment, the health care sector will remain resilient.

"We are also confident our robust fundamentals, favourable rental lease structures and deep market expertise..would ensure steady future rental growth and sustainable returns amid uncertain market conditions."

The trust's units closed up one cent to S$2.17 on Tuesday (Jan 26).