Singapore-listed Healthcare REIT Parkway Life REIT (SGX: C2PU) has reported distributable income of S$16.1 million for its 3Q 2013. The figure is 3.5 per cent higher as compared to the S$15.6 million for the same period last year.

Parkway Life REIT looks towards its enlarged portfolio of properties for better revenue figures.

Correspondingly, DPU for the quarter stands st 2.66 cents for 3Q 2013. Compared over the period of a year, DPU for YTD 3Q 2013 grew 4.2 per cent year-on-year from 7.62 cents to 7.93 cents. Excluding the one-off IRAS tax adjustment of S$0.6 million in 1Q 2012, the year-on-year DPU growth for YTD 3Q 2013 DPU is 5.5 per cent.

However the REIT recorded a 2.4 per cent fall for both gross revenue and net property income despite Japan’s recovering economy.

However the REIT expects better times ahead given the recently enlarged size of its property portfolio. Parkway Life REIT acquired a further five new Japan nursing home properties in September 2013. In all, the Group has acquired a total of seven properties at a combined purchase price of approximately S$82.3 million. with attractive net property yield of about 7 per cent. The REIT now holds a total of 40 properties under its Japan portfolio, amounting to S$485.6 million as at 30 September 2013.

Parkway Life REIT closed flat on the Singapore Exchange at S$2.40 on continued jitters surrounding real estate investments.

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.