Parkway Life REIT Mount Elizabeth HospitalParkway Life REIT property in Singapore, Mount Elizabeth Hospital

Singapore-listed healthcare REIT, Parkway Life REIT, announced on 26 April that it has achieved a distribution per unit (DPU) of 2.99 Singapore cents for its 1Q 2016, a fall of 7.0% as compared to the 3.21 cents paid in the corresponding period of 2015.

The REIT has attributed the decline due to the absence of a one-off distribution of divestment gain that was recorded for the corresponding period a year ago.

Distributable income for period came in at SGD18.09 million, also a fall of some 7% year-on-year while gross revenue and net property income increased by 8.6% and 8.5% to SGD26.90 million and SGD25.14 million respectively.

“This performance was driven primarily by contribution from higher-yielding properties acquired from the asset recycling initiative, higher rent from the Singapore properties and appreciation of the Japanese Yen”, said the REIT in a statement on the quarter’s results.

As of 31 March 2016, Parkway Life REIT’s gearing was at 36.4% with a current effective all-in cost of debt of 1.5% and weighted average debt term to maturity of 3.5 years.

“Going into FY2016, we remain cautiously optimistic and cognisant of challenges in acquisition opportunities given the market volatility”, said Yong Yean Chau, CEO of the REIT’s manager.

“But we believe that our favourable rental lease structures and other robust fundamentals will continue to sustain long-term value for our unitholders”, he added.

Units of Parkway Life REIT are currently listed on the Singapore Exchange at SGD2.45.

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.