PLife – BT

PLife Reit DPU up 17.8% in Q3

PARKWAY Life Real Estate Investment Trust (PLife Reit) has reported a 17.8 per cent year-on-year increase in distribution per unit (DPU) to 2.25 cents for the third quarter ended Sept 30, on the back of yield-accretive acquisitions in Japan and higher rent from its Singapore properties.

Gross revenue was $21.17 million, up 28.3 per cent from Q3 last year, while net property income rose 26.5 per cent to $19.43 million.

During the quarter, the group recognised revenue contributions from the six Japanese properties acquired in June this year, as well as contributions from five Japanese properties acquired in July. These amounted to $2.3 million.

Distributable income to unit-holders was $13.61 million, versus $11.55 million previously. At a DPU of 2.25 cents for the quarter, annualised distribution per unit came in at nine cents.

In September, PLife Reit completed reconstruction work at its Japanese nursing home Maison Des Centenaire Haruki.

This involved the conversion of existing clinic space into three income-producing rooms and a common area for administrative use, to yield a return on investment of 32.3 per cent and an 8.63 per cent increase in gross rent for the unexpired lease term of about 17 years.

‘PLife Reit remains cautiously optimistic about our medium to long-term prospects, supported by our favourable rental lease structures where at least 87.8 per cent of the total portfolio has downside revenue protection, good future rental growth with the CPI-linked revision formulae, long-term master leases and a 100 per cent occupancy rate across the portfolio,’ the trust said.

‘The demand for quality private healthcare will remain resilient and continue to grow, driven by growing affluence, fast-ageing populations and increasing social acceptance of the elderly living in nursing care facilities.’

The DPU for Q3 is payable on Dec 13.

Units in PLife Reit closed one cent higher at $1.70 yesterday.