Parkway Life REIT’s DPU jumps 14.6% even as revenue and NPI slip

Data from Parkway Life REIT’s latest disclosure has been updated into the Singapore REITs table.

Parkway Life REIT reported a distribution per unit (DPU) of 8.77 cents for the six months ended 30 June 2026, up 14.6% from 7.65 cents a year earlier.

This came even as gross revenue and net property income both declined over the same period, underscoring how the REIT’s rent structures can decouple headline income from what unitholders actually receive.

Gross revenue for the first half came in at SGD77.1 million, down 1.6% from SGD78.3 million in 1H2025, while net property income fell 2.0% to SGD72.4 million from SGD73.8 million.

The REIT attributed the softer top line to the depreciation of the Japanese yen and a tenant exit affecting five Japan nursing home properties, partly offset by higher contributions from its Singapore hospitals.

Distributable income nonetheless rose 14.6% year on year to SGD57.2 million, lifted by the annual rent review formula applied to the Singapore hospitals and a step-up lease arrangement from the France portfolio.

There was also the absence of a tax provision that had been booked for the France portfolio in the prior-year period.

Notably, an additional SGD0.8 million uplift from Q1 2026 revenue-sharing at Gleneagles Hospital and Parkway East Hospital has not yet been included in this distribution and will only be finalised and paid out in the second half, once full-year revenue is determined, meaning investors should expect a further boost later in the year.

Occupancy remained fully let in Singapore and France at 100%, while Japan stood at 94.3% with five vacant Miyako properties.

The portfolio’s weighted average lease expiry stood at 14.64 years based on gross revenue, with no more than 3.0% of leases due to expire in any single year over the next five years, a structural feature that limits near-term rental disruption.

On the balance sheet, gearing was healthy at 33.8% as at 30 June 2026, leaving debt headroom of SGD542.5 million and SGD862.2 million before hitting the regulatory 45% and 50% thresholds respectively.

All-in cost of debt stood at 1.67%, with interest cover of 8.2 times.

Parkway Life REIT was last done on the Singapore Exchange at SGD4.22, which presently implies a distribution yield of 4.16% according to data on the Singapore REITs table.

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