Parkway Life Reit H1 DPU up 1.5% at S$0.0765 on new assets, higher rental contributions
[SINGAPORE] Parkway Life Reit has raised its first-half distribution per unit (DPU) by 1.5 per cent to S$0.0765 from S$0.0754 in the previous corresponding period.
Distributable income stood at S$49.9 million, up 9.5 per cent from S$45.6 million. Revenue climbed 8.1 per cent to around S$78.3 million, boosting net property income by 8 per cent to S$73.8 million.
The higher DPU and distributable income came on the back of the acquisitions of one more nursing home in Japan and 11 nursing homes in France in H2 FY2024, though this was partially offset by the depreciation of the yen, said the real estate investment trust’s (Reit) manager on Wednesday (Aug 6) in its H1 business update.
It also said its Singapore hospitals delivered continued growth with fixed 3 per cent annual rental step-ups through the financial year.
The distribution of S$0.0765 per unit will be paid on Sep 9, 2025.
Sister company Parkway Hospitals Singapore, a subsidiary of IHH Healthcare, is the master lessee for Mount Elizabeth, Gleneagles and Parkway East Hospital.
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The long-term master leases with Parkway Hospitals Singapore was renewed for 20.4 years from Aug 23, 2022.
Finance costs for H1 rose 27.8 per cent to S$3.3 million from S$2.6 million on the funding of capital expenditure, the Japan acquisition in 2024, as well as higher interest costs from debts denominated in yen, partially offset by the depreciation of the currency.
As at Jun 30, 2025, the Reit’s portfolio size stood at around S$2.46 billion across 75 properties and 35 lessees in Singapore, Malaysia, Japan and France. By revenue, 59.8 per cent of its properties are concentrated in Singapore, 31.9 per cent in Japan, 8.2 per cent in France and 0.1 per cent in Malaysia.
The bulk of its portfolio asset mix is taken up by hospitals and medical centres at 65.3 per cent, and nursing homes comprise 34.7 per cent, as at June 2025.
Its weighted average lease to expiry was 14.91 years. Less than 3 per cent of the Reit’s leases are due to expire each year for the next five years.
In terms of debt maturity profile, its current weighted average debt term to maturity stood at three years as at June 2025. The manager said its gearing was healthy at 35.4 per cent as at June, with ample debt headroom.
Units of Parkway Life Reit closed 0.7 per cent or S$0.03 higher at S$4.06 on Tuesday.
