Parkway Life Reit posts 7% drop in Q1 DPU on absence of one-off gain

CEO of Parkway Life Reit Yong Yean Chau.
CEO of Parkway Life Reit Yong Yean Chau. PHOTO: THE BUSINESS TIMES

SINGAPORE - Parkway Life Reit reported that its distribution per unit (DPU) for the first quarter ended March 31 fell 7 per cent to 2.99 Singapore cents from 3.21 Singapore cents for year-ago period.

The healthcare Reit said the decline was due to the absence of one-off distribution of divestment gain enjoyed a in the same period a year ago.

Its DPU from recurring operations grew 5.1 per cent year-on-year as net property income rose 8.5 per cent to S$25.14 million.

This was on the back of contribution from higher-yielding properties acquired from its asset recycling initiative, higher rent from its Singapore properties and the appreciation of the Japanese Yen.

Looking ahead, Mr Yong Yean Chau, chief executive officer of the Reit's manager, said: "The healthcare industry continues to present pockets of opportunities, with population expansion and rising affluence being strong drivers of health spending.

"Going into FY2016, we remain cautiously optimistic and cognisant of challenges in acquisition opportunities given the market volatility. But we believe that our favourable rental lease structures and other robust fundamentals will continue to sustain long-term value for our unitholders."