The manager of ParkwayLife Real Estate Investment Trust (PLife REIT), one of Asia’s largest listed healthcare REITs, announced distribution per unit (DPU) of 3.54 cents for the 3QFY2020 ended September, 7.4% higher than the 3.30 cents declared a year ago.
DPU year-to-date came in at 10.22 cents, up 3.8% from the 9.85 cents in the same period in 2019.
Gross revenue inched up 0.8% y-o-y to $30.2 million in 3QFY2020 while gross revenue y-t-d rose 3.6% y-o-y to reach $90.3 million.
See also: Parkway Life REIT reports 2.5% higher 2Q20 DPU of 3.36 cents
The growth is largely due to contribution from three nursing facilities in Japan, which were acquired in 4QFY2019 and higher rent from the REIT’s properties in Singapore as well as the appreciation of the Japanese yen.
The higher rent was partially offset by the one-off receipt of insurance proceeds for the reimbursement of property repair expenses incurred by certain Japanese assets in 2019.
Consequently, net property income (NPI) for the quarter grew 2.0% y-o-y to $28.1million.
Amount available for distribution was up 7.4% y-o-y to $21.4 million.
The group says it targets to put in place loan facilities by 4QFY2020 to term out all maturing debts due in 2021.
With some 88% of its interest rate exposure hedged, PLife REIT’s interest coverage ratio stood at 17.0 times with optimal gearing at 38.6%.
The group says it has also put net income hedges for the Japanese yen in place till 2QFY2025 as a shield against currency volatility.
As at Sept 30, cash and cash equivalents stood at $33.9 million.
PLife REIT owns a portfolio of 53 properties located in the Asia Pacific (APAC) region with a total portfolio size of some $1.96 billion as at Sept 30. The REIT’s portfolio including the largest portfolio of private hospitals in Singapore comprising Mount Elizabeth, Gleneagles and Parkway East hospitals.
The REIT also has 49 assets located in Japan as well as 48 high-quality nursing home and care facility properties in the country. It also owns strata-titled units/lots in MOB Specialist Clinics Kuala Lumpur in Malaysia.
“Our tenants continue to adhere to strict Covid-19 guidelines and their operations remain stable during this pandemic. With a strong portfolio of quality assets combined with active capital management strategies, PLife REIT can continue to deliver improved returns to unitholders,” says Yong Yean Chau, CEO of the manager.
As at 9.30am, units in PLife REIT are trading 3 cents lower or 0.7% down at $4.07.
