Parkway Life REIT books 14% year-on-year distribution growth in Q1

Parkway Life Real Estate Investment Trust (PLife REIT) has booked 14 per cent year-on-year growth in the first quarter of 2015, announced its manager Parkway Trust Management on Wednesday (Apr 29).

The overall distribution per unit (DPU) for Q1 2015 increased 14 per cent year-on-year to 3.21 Singapore cents, said Parkway Trust Management in a news release. Notwithstanding the divestment of seven Japanese nursing homes in December 2014, the Asian healthcare REIT’s DPU edged up 0.7 per cent year-on-year to 2.84 cents.

Despite the divestment, PLife REIT’s gross revenue for Q1 2015 registered 0.7 per cent year-on-year growth, at S$24.8 million. The growth in revenue was primarily driven by higher rent from its Singapore properties, said Parkway Trust Management.

PLife REIT had acquired seven new Japanese properties with the capital proceeds from the divestment, and the new properties are expected to start contributing to group revenue from Q2 onwards, added Parkway Trust Management.

The divestment gains of S$9.11 million will be distributed equally to unitholders throughout FY2015.

PLife REIT’s gearing remained at 34.4 per cent as at Mar 31, 2015. The weighted average term to maturity is 3.6 years with an all-in cost of debt of 1.5 per cent.

Source : Channel NewsAsia – 29 Apr 2015

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