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

Singapore-listed healthcare REIT, Parkway Life REIT (SGX:C2PU), has recorded distributable income of SGD20.3 million for its 3Q 2015, representing an increase of 15.6% than the SGD17.6 million for the same period last year.

Correspondingly distribution per unit (DPU) recorded for the period is 3.36 Singapore cents, also a 15.6% increase from the 2.90 Singapore cents paid in the same quarter last year.

However these figures include one-time divestment gains from March 2015. Without the divestment income, DPU from recurring operations grew 2.5% year-on-year in 3Q 2015 and 1.9% for year-to-date 3Q 2015.

3Q 2015 gross revenue rose to SGD26.0 million, up 2.5% from SGD25.3 million in 3Q 2014 while net property income was SGD24.3 million and SGD71.4 million for 3Q 2015 and YTD 3Q 2015, representing year-on-year increases of 2.4% and 1.6% respectively.

“Our robust portfolio fundamentals and sound financial metrics have allowed us to deliver consistent attractive results and rewards to our unitholders”, said Yong Yean Chau, CEO of the REIT’s manager.

“Moving ahead, while we seek to be nimble to market changes, we will continue to build on our successful strategies to enhance our overall value and growth potential in a sustainable way”, said Yong.

The REIT has also said that it is positioning itself for an environment of rising interest rates by terming out all of its debts due in 2016 and hedging approximately 78% of its interest risk exposure. As at 30 September 2015, its weighted average debt term to maturity stands at 3.7 years, with an effective all-in cost of debt of 1.5% while gearing is at 35.8%.

Units of Parkway Life REIT last changed hands on the Singapore Exchange at SGD2.33.

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.