Parkway Life REIT property, Parkway East Hospital. (Photo: Google Maps)

Parkway Life REIT has reported a distribution per unit (DPU) of 3.30 Singapore cents for its 3Q 2019, an increase of 1.9% year-on-year.

The healthcare REIT’s gross revenue rose by 5.4% year-on-year to SGD1.5 million to S$29.9 million, mainly due to higher rent from its Singapore properties, stronger Japanese Yen, and a one-off receipt of insurance proceeds repair expenses incurred by certain Japanese assets in the same quarter.

In addition, Parkway East Hospital’s adjusted hospital revenue from the 12th year lease outperformed its minimum guaranteed rent, contributing to an increase in revenue.

Net property income rose by 3.9% year-on-year to SGD27.6 million.

For the quarter, the REIT lowered its all-in cost of debt from 0.91% to 0.81%, with gearing at 37.2%.

Portfolio occupancy remains at 100%, with a weighted average lease expiry (WALE) at 11.6 years, based on gross revenue.

“While the long-term outlook of the industry continues to be driven by solid fundamentals, we remain cautious and vigilant in our approach and are committed to safeguarding the stability of distribution to unitholders, said Yong Yean Chau, CEO of the REIT’s manager.

“We have enjoyed uninterrupted recurring DPU growth since listing and remain on track to deliver another year of growth”, he added.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.