Parkway Life REIT has reported a distribution per unit (DPU) of 10.99 cents for the 9MFY2023 ended Sept 30, 2.8% higher y-o-y. The REIT’s 3QFY2023 DPU will be distributed as part of its 2HFY2023 distribution.
For the 9MFY2023, the REIT’s gross revenue rose by 24.6% y-o-y to $110.9 million thanks to higher rent received from its Singapore hospitals. The higher rent is due to the straight-lining of rental income over the lease term, as well as additional revenue from the properties acquired in 2022. The increase in gross revenue was offset by the depreciation of the Japanese yen (JPY).
Total net property income (NPI) for the 9MFY2023 stood at $104.5 million, 26.2% higher y-o-y.
Total return for the period after tax before distribution fell by 2.1% y-o-y to $69.7 million.
As at Sept 30, the REIT’s Singapore and Japan portfolios saw 100% occupancies while its Malaysian portfolio had an occupancy of 31%. Total portfolio occupancy stood at 99.7% for the period. The REIT’s weighted average lease expiry (WALE) stood at 16.50 years by gross revenue.
In its business update, the REIT manager noted that its principle foreign exchange (forex) was mitigated as its acquisitions in Japan were fully funded by the yen, thus providing a natural hedge. Its income forex risk is mitigated by JPY net income hedges till 1QFY2027. About 74% of its interest rate exposure are hedged, as well.
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As at Sept 30, the REIT’s gearing stood at 36.0% with an interest cover of 12.8x.
Its net asset value (NAV) per unit stood at $2.29 as at the same period.
Units in Parkway Life REIT closed 2 cents higher or 0.6% up at $3.36 on Oct 31.
