Parkway Life REIT has reported a distribution per unit of 7.48 cents for its 2HFY2023, up 2.1% y-o-y. This brings its full-year distribution to 14.77 cents, up 2.7%, marking yet another increase in its recurring annual distribution since its IPO back in 2007.
Gross revenue for the 2HFY2023 ended last Dec was up 4.7% y-o-y to $73.1 million, bringing full-year revenue to $147.5 million, up 13.5% y-o-y.
The gain was led by contributions from properties acquired over the last two years, where the REIT collected higher rent from the Singapore hospitals under a new master lease agreement.
However, the weaker yen somewhat offset the gains.
Net property income for 2HFY2023 was $69 million, up 4.8% y-o-y, while full-year NPI reached $139.1 million, up 14.1%.
As at Dec 31, the REIT's portfolio of hospitals and nursing homes is valued at $2.23 billion, up $15.8 million.
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As at end of last year, the REIT had an all-in cost of debt of 1.27% and interest cover of 11.3 times. Gearing remains at 35.6% well within the regulatory gearing limit of 50%.
Yong Yean Chau, CEO of the REIT's manager, says that despite the increasingly challenging market environment, Parkway Life REIT managed to sustain and grow its DPU for FY2023.
It was able to do by sticking to its "focused and prudent" strategy of "targeted investment, proactive capital management and strategic asset recycling and development."
"This has allowed us to create even greater value for our unitholders whilst building on the group’s strength to fortify portfolios," says Yong.
"Amidst the macroeconomic uncertainties and challenges, Parkway Life REIT remains well positioned and resilient in 2024 with our portfolio of well-diversified high quality and yield accretive properties across Singapore, Japan and Malaysia," he adds.
Parkway Life REIT closed Feb 1 at $3.50, down 0.57% for the day and down 5.15% over the past year.
