Parkway Life Real Estate Investment Trust (PLife REIT) has reported distributable income of S$14.5 million for the quarter ended September 30, an increase of 6.8 per cent year-on-year. Distribution per unit (DPU) for the quarter rose 6.8 per cent year-on-year to 2.40 cents.
Net property income increased 3.6 per cent year-on-year to S$20.14 million.
Gross revenue increased by 4.1 per cent year-on-year to S$22 million. Plife REIT attributed this to full quarter revenue contribution from Japan nursing home properties acquired in July 2010 and January 2011.
It added that revenue was also driven by higher rent from the Singapore properties due to a rental growth rate of 5.3 per cent.
While higher financing costs were incurred to fund the Japan properties acquired in 2010 and 2011, PLIfe REIT said that overall financing costs fell primarily due to interest cost savings from the refinancing and re-pricing exercises announced in August 2010 and January 2011 respectively.
Lower locked-in hedged rates arising from the recent extension of interest rate hedges with effect from August 2011 also affected financing costs.
Mr Yong Yean Chau, chief executive officer of the Manager, said it is looking towards more asset enhancement initiatives to add more value to its investments.
He added: “With 87.9 per cent of our total portfolio having downside revenue protection, and relying on our solid fundamentals, we also expect to comfortably ride out the current economic uncertainty as we continue to act on arising opportunities.”
Source : Channel NewsAsia – 3 Nov 2011