Parkway Life REIT DPU up 6.9% for 1Q2014

0

Singapore-listed health care REIT Parkway Life (SGX:C2PU) posted a distribution per unit (DPU) of 2.82 Singapore cents for its 1Q 2014, an almost 7% increase from the 2.64 Singapore cents recorded for the corresponding period in 2013.

The increase in DPU comes on the back of a 6.8% and 6.9% year-on-year increase in gross revenue and net property income respectively for the quarter. Gross revenue for the REIT came in at SGD24.6 million compared to the SGD23 million from 1Q 2013.

The REIT has attributed its growth in takings to strong rental performance of its seven properties in Japan and the contribution from two other properties it acquired in July and September 2013.

The REIT's Singapore properties also saw higher rent growth of 4.4% due to the CPI + 1% rent review formula built into the lease structure commencing from year seven.

Managers for the REIT expect strong performance ahead despite the weakening of the JPY. Two nursing homes and an extended-stay facility acquired in Osaka during March 2014 are expected to bolster the next quarter's results further as these properties make full quarter contributions to revenue.

Despite ongoing uncertainties with US monetary policy, the REIT is confident of forging ahead given the rapidly ageing demographic of countries in the Asia Pacific.

Units of Parkway Life REIT closed the trading week at SGD2.50 on the Singapore Exchange, down about 0.4% from the previous day.

Share.

Comments are closed.