Parkway Life Reit lifts Q3 distribution per unit by 3.5% to 2.66 cents

Parkway Life Real Estate Investment Trust (PLife Reit) has posted a 3.5 per cent rise in distributable income to $16.1 million for the third quarter.

This represents a distributable income per unit (DPU) of 2.66 cents.

Year to date, DPU grew by 4.2 per cent from 7.62 cents to 7.93 cents.

Excluding a one-off Iras tax adjustment of $600,000 in the first quarter of 2012, the year-on-year DPU growth for the first nine months is 5.5 per cent.

Gross revenue fell by 2.4 per cent to $23.3 million for the third quarter, primarily due to depreciation of the Japanese Yen which was offset by recognition of rental income contributed from the properties acquired in July.

Revenue was also driven by higher rent from its Singapore properties.

Bolstered by successful policies under Abenomics, Japan's recovering economy bodes well for PLife Reit's growth plans.

Following the acquisition of two nursing home properties in July, PLife Reit acquired a further five new Japan nursing home properties in September.

In all, the group has acquired a total of seven properties at a combined purchase price of 6.26 billion yen (S$82.3 million) with attractive net property yield of about 7 per cent.

PLife Reit now holds a total of 40 properties under its Japan portfolio, amounting to $485.6 million as at Sept 30.

The third quarter distribution will be paid out on Dec 10.