Parkway Life REIT’s Q2 DPU up 13.7% on-year

Singapore Exchange’s Mainboard-listed Parkway Life Real Estate Investment Trust (REIT) has posted a 13.7 per cent rise in its second quarter distributable income per unit (DPU) to 1.89 Singapore cents, from 1.66 cents a year ago.

This was on the back of a 27.9 per cent increase in net property income to S$15 million in the same quarter, from S$11.7 million last year.

Gross revenue in the three months ended June gained 28.9 per cent to S$16.1 million, compared to S$12.5 million.

Parkway Life attributed the improved property income and gross revenue to higher revenue contributions from its Japanese properties and higher rental income from its Singapore hospital properties.

Asia’s largest healthcare REIT has also secured a loan of S$50 million over three years, through an Islamic revolving credit facility. The trust said it is the first Singapore-listed entity to be offered a Shariah-compliant revolving credit facility.

The credit facility from the Islamic Bank of Asia satisfies the Shariah requirement of having an underlying asset to facilitate the creation of debt through a trade contract.

As at June 30, Parkway Life REIT’s gearing ratio stood at 22.7 per cent, which it said is one of the lowest within the Singapore REIT industry.

The trust added that it is in a healthy financial position and that the proposed facility will provide it with added financial flexibility.

This will enable it to react swiftly to address future acquisition opportunities, asset enhancement initiatives and the refinancing of short-term debt facilities.

Source : Channel NewsAsia – 6 Aug 2009

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