Parkway Life REIT property, Mount Elizabeth Hospital, in Singapore. (Photo: REITsWeek)

Healthcare landlord Parkway Life REIT has recorded a DPU of 3.06 Singapore cents for its 4Q 2016, a fall of 9.2% year-on-year from the 3.37 cents paid in the corresponding period of 2015.

Subsequently the REIT’s full-year DPU for 2016 saw a fall of 8.8% at 12.12 cents, from 13.29 cents paid for FY2015.

However if divestment gains arising from the REIT’s disposal of seven Japan properties in December 2014 were excluded, the DPU from recurring operations would have seen growths of 2.3% year-on-year for 4Q 2016 and 2.8% for FY2016, said the REIT.

Gross revenue was 5.4% higher at SGD27.7 million (USD19.5 million) for 4Q 2016 and 7.2% higher at SGD110.1 million for FY2016.

This was driven primarily by contribution from the acquisition of a property in March 2016 , higher rent from the Singapore properties, and appreciation of the JPY against the SGD, said Parkway Life REIT.

Correspondingly, net property income registered a 4.0% increase at SGD25.6 million for 4Q 2016 and an increase of 6.7% for FY2016 at SGD102.4 million.

As at 31 December 2016, the REIT’s gearing was at 36.3% with an effective all-in cost of debt of 1.4%.

“With 99% of its interest rate exposure hedged, [Parkway Life REIT] remains well insulated from the interest rate vulnerabilities”, said the REIT in its statement on the results.

“Building on our sound fundamentals and defensive position, we remain vigilant in screening for compelling investment opportunities in the new year and beyond”, said Yong Yean Chau, CEO of the REIT’s manager.

Units of Parkway Life REIT last changed hands on the Singapore Exchange at SGD2.39.

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.