Parkway Life REIT has cited higher revenue from its properties as a primary contributing factor to the quarter's results.

Singapore-listed Healthcare REIT (SGX:C2PU) Parkway Life REIT has further extended its footprint in Japan with the acquisition of five more nursing home properties.

Parkway Life REIT currently has a portfolio of 37 healthcare properties in Singapore, Malaysia and Japan.

The properties are to be acuired from K.K. Sawayaka Club, a wholly owned subsidiary of K.K. Uchiyama Holdings, at a combined purchase price of approximately S$59.2 million.

The purchase will is funded by a 6-year committed and unsecured JPY term loan facility at an all-in cost of approximately 1.75 per cent per annum. The acquisition is expected to raise Parkway Life REIT's gearing level from 32 per cent to 34.8 per cent.

"We see the new additions as a further step in the right direction as we capitalise on the rapidly growing eldercare market in Japan", said Mr. Yong Yean Chau, CEO of the Manager for Parkway Life REIT.

Acquisition of all 5 properties are expected to complete by October 2013. Further analysis of this story including projected impact to earnings, will be covered in the upcoming issue of REITSWEEK.

Units of Parkway Life REIT are currently trading up about 1 per cent on the SGX from its previous day's close at S$2.31.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.