Parkway Life Reit scores with higher distribution payout for Q3

SINGAPORE - Parkway Life (PLife) Reit has reported an 8.9 per cent rise in distributable income to $17.6 million for the third quarter.

This represents a distribution per unit (DPU) of 2.9 cents, up from 2.66 cents in the same period last year.

With contributions from yield accretive acquisitions, higher rent from existing properties and the positive effect of net income hedge, DPU for the first nine months grew 8.7 per cent to 8.62 cents.

Gross revenue rose by 8.5 per cent to $25.3 million, which was primarily derived from rental income contributions from the Japanese properties acquired in second half of 2013 and first quarter of 2014 as well as higher rent from existing properties.

PLife Reit's favourable rental lease structures in which at least 91 per cent of its Singapore and Japan portfolios have downside revenue protection and 66 per cent of the total portfolio is pegged to inflation-linked revision formula ensure steady rental growth whilst protecting revenue stability amid uncertain market conditions.

Net property income was S$23.7 million, up 8.6 per cent.

Any adverse impact from the depreciation of the Japanese yen was mitigated as PLife Reit has hedged its Japan net income for the next few years.

Gearing remained at a healthy level of 34.6 per cent, with ample headroom for growth.

PLife Reit successfully termed out all the debts that are due in 2015.

The weighted average debt term to maturity has been extended from 2.88 years to 3.91 years, following the completion of pre-emptive refinancing exercise, with current effective all-in cost of debt of 1.43 per cent.

PLife Reit owns a well-diversified portfolio of 47 properties with a total portfolio size of some $1.5 billion as at Sept 30.

It owns the largest portfolio of private hospitals in Singapore comprising Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital, covering an aggregate of 730 beds.

It also has 43 assets located in Japan, of which 42 are high quality nursing home and care facility properties in various prefectures of Japan.