Parkway Life REIT Reports A 3.8% Increase In 3Q Distribution Per Unit
November 4, 2020 – Parkway Trust Management Limited, as manager of Parkway Life Real Estate Investment Trust, one of Asia’s largest listed healthcare REITs, is pleased to announce a Distribution per Unit (“DPU”) of 3.54 Singapore cents for the third quarter ended 30 September 2020 (“3Q 2020”) and 10.22 Singapore cents for the nine months ended 30 September 2020 (“YTD 3Q 2020”), representing an increase of 7.4% and 3.8% year-on-year (“Y-O-Y”) respectively.
Quarterly gross revenue rose 0.8% Y-O-Y to S$30.2 million in 3Q 2020 and YTD 3Q 2020 gross revenue rose 3.6% to reach S$90.3 million compared to the same period last year. Growth is largely comprised of contribution from three nursing rehabilitation facilities in Japan, which were acquired in 4Q 2019, and higher rent from the Singapore properties as well as the appreciation of Japanese Yen (“JPY”).
The higher rent was partially offset by the one-off receipt of insurance proceeds for the reimbursement of property repair expenses incurred by certain Japanese assets in 2019. Consequently, net property income for 3Q 2020 grew 2.0% to S$28.1 million, from S$27.6 million in 3Q 2019. YTD 3Q 2020 net property income reached S$84.1 million, a 3.9% increase over YTD 3Q 2019.
With a portfolio of 49 healthcare properties in Japan, the Group remains proactive in managing its exposure to interest rate risk and foreign exchange risk. As at 30 September 2020, the Group continues to enjoy an effective low all-in cost of debt of 0.54% and there were no long- term debt refinancing needs for the Group till June 2021.
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